Question 1

How long will it take to pay off my credit card

Accepted Answer

Use the formula: n = -ln(1 - (r × P / PMT)) / ln(1 + r), where r is monthly interest rate, P is balance, and PMT is monthly payment. Or use our credit card payoff calculator for instant results. At minimum payments, most cards take 10-20+ years to pay off.

Question 2

What happens if I only pay the minimum on my credit card

Accepted Answer

Paying only the minimum extends payoff to 10-20+ years and costs 2-3× more in interest than the original balance. For example, $10,000 at 18% APR with minimum payments takes 20+ years and costs $24,000+ total ($14,000+ in interest).

Question 3

Should I pay off credit cards or save first

Accepted Answer

Build a small emergency fund ($1,000) first, then attack credit card debt aggressively. Credit cards have 15-25% interest rates, while savings earn 1-4%. Mathematically, paying high-interest debt first saves more money than keeping extra cash.

Question 4

How do I calculate my credit card payoff date

Accepted Answer

List your balance, APR, and monthly payment. Use a payoff calculator or the formula: Payoff Time = -ln(1 - (Monthly Rate × Balance / Monthly Payment)) / ln(1 + Monthly Rate). The result is the number of months to become debt-free.

Question 5

What is the difference between debt snowball and debt avalanche

Accepted Answer

Debt snowball targets the smallest balance first for quick wins and motivation. Debt avalanche targets the highest interest rate first to minimize total interest paid. Snowball provides psychological benefits; avalanche saves more money. Choose based on what motivates you.

Question 6

Will paying off my credit card hurt my credit score

Accepted Answer

Paying off credit cards may temporarily lower your score slightly due to reduced credit mix and account age, but the long-term benefit of being debt-free far outweighs temporary fluctuations. Your score will recover as you demonstrate responsible credit use.

Question 7

Should I do a balance transfer to pay off credit card debt

Accepted Answer

Consider a balance transfer if you can get 0% APR for 12-18 months, have good credit (690+), and are committed to paying off the balance during the promo period. Factor in the 3-5% transfer fee. Don't transfer if you'll just run up new debt on the old cards.

Question 8

How much should I pay each month to pay off my credit card in 2 years

Accepted Answer

Calculate using: PMT = P × [r × (1 + r)^n] / [(1 + r)^n - 1]. For example, $10,000 at 18% APR (1.5% monthly) for 24 months requires ~$500/month. Always pay more than the minimum to accelerate payoff and reduce interest.

Question 9

What is the avalanche method for paying off credit cards

Accepted Answer

The debt avalanche method targets the credit card with the highest interest rate first. Pay minimums on all cards except the highest-rate card, which you attack with all extra money. Once it's paid off, move to the next highest rate. This minimizes total interest paid.

Question 10

How can I pay off my credit card debt faster

Accepted Answer

Pay more than the minimum (2-3× minimum or more), stop using cards, reduce expenses to free up money, increase income through side hustles, use windfalls (tax refunds, bonuses) to make lump-sum payments, and consider balance transfers or consolidation loans for lower rates.

Question 11

Is it better to pay off credit cards or invest

Accepted Answer

Pay off credit cards first! Credit cards charge 15-25% interest, while investments historically return 7-10%. You're guaranteed a 15-25% return by paying off credit cards, but investment returns are uncertain and risky. Only invest after eliminating high-interest debt.

Question 12

What is the snowball method for paying off debt

Accepted Answer

The debt snowball method targets the smallest balance first regardless of interest rate. Pay minimums on all cards except the smallest, which you attack with all extra money. Once paid off, apply that payment to the next smallest balance. Creates quick wins and builds motivation.

Question 13

How do I avoid getting back into credit card debt

Accepted Answer

Build an emergency fund (3-6 months expenses), stop using credit cards or pay balance in full monthly, track spending, create and follow a budget, live below your means, and use debit or cash for daily purchases. Address the spending habits that caused the debt.

Practice Examples

Question 14

Example 1: Calculate Payoff Time

Accepted Answer

Problem:

Balance: $12,000
APR: 20%
Monthly Payment: $400

Solution:

Monthly Rate: 0.20 ÷ 12 = 0.0167
Principal: 12,000
Payment: 400

n = -ln(1 - (0.0167 × 12,000 / 400)) / ln(1.0167)
n = -ln(1 - 0.501) / 0.0166
n = -ln(0.499) / 0.0166
n = 0.695 / 0.0166
n = 41.9 months (~3.5 years)

Total Paid: 41.9 × $400 = $16,760
Interest: $4,760

Question 15

Example 2: Compare Payment Strategies

Accepted Answer

Scenario:

Balance: $8,000
APR: 18%

Option A: Minimum Payment (2%)

Monthly: $160
Time: ~9 years
Total Interest: ~$5,800
Total Paid: ~$13,800

Option B: $500/month

Monthly: $500
Time: ~1.5 years
Total Interest: ~$1,100
Total Paid: ~$9,100

Interest Saved: $4,700
Time Saved: 7.5 years

Question 16

Example 3: Calculate Payment Goal

Accepted Answer

Problem:

Balance: $15,000
APR: 22%
Goal: Payoff in 18 months

Solution:

Monthly Rate: 0.22 ÷ 12 = 0.0183
Principal: 15,000
Months: 18

PMT = 15,000 × [0.0183 × (1.0183)^18] / [(1.0183)^18 - 1]
PMT = 15,000 × [0.0183 × 1.381] / [1.381 - 1]
PMT = 15,000 × 0.0253 / 0.381
PMT = $996/month

Total Paid: 18 × $996 = $17,928
Interest: $2,928

Related Calculators

Need Help? Our credit card payoff calculator is perfect for anyone ready to escape credit card debt. Calculate your payoff plan now and start your journey to financial freedom!

Disclaimer: Credit card payoff calculator provides estimates based on inputs. Actual payoff time and interest may vary based on changes in APR, fees, payment amounts, and other factors. Consult financial advisors for personalized debt management advice.

Payment	Time to Payoff	Total Interest	Total Paid
Minimum (2%)	20+ years	$14,000+	$24,000+
3% ($300)	~4 years	$3,800	$13,800
5% ($500)	~2 years	$1,900	$11,900
10% ($1,000)	~1 year	$800	$10,800

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About This Calculator

Calculate Your Credit Card Payoff

Credit Card Balance:

Payment Options:

Option 1: Monthly Payment

Option 2: Payoff Goal

Option 3: Monthly Payment Increase

Your Results:

Payoff Comparison:

What is a Credit Card Payoff Calculator?

Why Use a Credit Card Payoff Calculator?

How Credit Card Interest Works

Understanding APR

How Interest Is Calculated

The Grace Period

The Minimum Payment Trap

How Minimum Payments Are Calculated

The True Cost of Minimum Payments

Credit Card Payoff Strategies

Strategy 1: Debt Snowball

Strategy 2: Debt Avalanche

Strategy 3: Debt Snowflake

Strategies to Pay Off Faster