Credit Card Payoff Calculator

Most US credit cards calculate the minimum payment as the greater of: (a) 1-2% of your balance plus any accrued interest, or (b) a flat floor of $25 or $35. This calculator assumes a 2% of balance minimum with a $25 floor for its comparison scenario. Your actual minimum varies by card — check your statement.

Because the minimum payment is designed to barely cover the interest. On a $6,000 balance at 22% APR, the first month's interest alone is $110. A 2% minimum payment is $120. So $110 goes to interest and only $10 reduces your balance — meaning at this rate, it would take you decades to pay off. This is intentional credit card economics.

Pay much more than the minimum and stop using the card. Even adding $50/month above the minimum can cut years off the payoff. Two popular strategies: the avalanche method (pay extra on the highest-APR card first — fastest in dollars saved) and the snowball method (pay off the smallest balance first — fastest psychological wins). Both work; pick the one you'll stick with.

If you can qualify (good credit needed) and you can pay off the balance before the promo period ends (usually 12-21 months), yes — it's almost always worth it. Watch for: the balance transfer fee (typically 3-5%), what the rate becomes after the promo, and the risk of running up the original card again.

Often yes. Personal loans typically offer rates of 7-15% versus credit card rates of 22-29%, and a fixed payoff date eliminates the temptation to revolve forever. Run the math: a $15,000 balance at 24% APR with $400 monthly payment takes 56 months and $7,400 in interest. The same balance as a personal loan at 12% over 60 months costs $4,990 in interest — saving you $2,400+.

Yes, in a big way. Credit utilization (the % of your available credit you're using) accounts for about 30% of your FICO score. Getting utilization below 30% — and ideally below 10% — typically increases scores by 20-50 points. Keep the card open after paying it off, even if you don't use it — closing it lowers your available credit and can hurt your score.

Your card goes 30 days past due → reported to credit bureaus → late fees stack up → 60-day late → 90-day late → 180 days = charge-off (the bank writes the debt off as a loss) → debt collector or lawsuit. Your credit score drops 100+ points. The debt doesn't disappear; you still owe it, and now it's gathering judgments and collection fees. Always pay something, even if it's just the minimum.

APR is the annual interest rate. APY (or effective annual rate) accounts for compounding within the year. Credit cards typically state APR but charge interest based on daily periodic rates that compound, making the actual annualized cost slightly higher than the stated APR. The difference is small — for practical purposes, treat APR as your effective cost.

Usually no. Closing a card removes available credit, which raises your utilization ratio on remaining cards. It also shortens your average account age. The exception: cards with annual fees you can't justify. If you're paying $95/year and never use the card, close it — the score hit is minor and you save real money.

Yes, often successfully. Call the customer service number, ask to lower your APR, mention you've received offers from other cards with lower rates, and ask politely. Roughly half of callers get a rate reduction — typically 2-5 percentage points. It costs you nothing to ask and can save thousands. Try once every 6-12 months.