💳 Credit Card Payoff Calculator

Breaking Free from Credit Card Debt

Credit card interest rates are among the highest consumer borrowing costs — average APRs now exceed 22%. Understanding exactly how long it takes to become debt-free, and how much interest accrues, is often the wake-up call needed to accelerate payoff.

The Minimum Payment Trap

Credit card minimum payments (typically 1–2% of your balance) barely cover interest charges. An $8,500 balance at 22% APR paying only $175/month would take over 20 years to pay off and cost more than $13,000 in interest — nearly double the original debt. Paying $400/month clears it in 26 months for just $2,100 in interest.

Payoff Strategies

• Avalanche Method: Pay minimums on all cards, put every extra dollar toward the highest-APR card first. Mathematically optimal — minimizes total interest paid.
• Snowball Method: Pay off smallest balance first regardless of rate. More psychologically motivating for many people.
• Balance Transfer: Move high-interest debt to a 0% intro APR card — but watch for transfer fees and the rate after the intro period ends.