Paying off credit card debt
How is credit card interest calculated?
Most cards charge interest daily based on your APR, which works out to roughly your APR divided by 12 each month. This calculator uses that monthly rate to estimate how your balance shrinks over time.
Why does paying only the minimum take so long?
Minimum payments are often barely more than the interest charged that month, so very little goes toward the balance itself. Even a small increase above the minimum can cut years and a lot of interest off your payoff.
Should I use the avalanche or snowball method?
The avalanche method pays the highest-interest card first and saves the most money. The snowball method pays the smallest balance first for quick wins that keep you motivated. The best method is the one you will stick with.
Can a balance transfer help me pay off my card faster?
A 0% balance transfer card can pause interest for a set period, so every payment goes toward the balance. Watch for transfer fees, usually 3% to 5%, and make a plan to clear the balance before the promotional rate ends.
Should I stop using my card while paying it off?
Ideally yes. New charges make the balance grow while you pay it down. Switching everyday spending to debit or cash makes your payoff date real and predictable.
Building a safety net too? Try the Emergency Fund Calculator
Estimates assume a fixed APR, no new charges and no fees. Educational content only — not individualized financial, investment, tax or legal advice.