How it works
Credit cards charge interest monthly on the remaining balance. Only the part of your payment above the interest charge shrinks the debt โ minimum payments are designed to keep you in debt for years.
Monthly interest = balance ร APR รท 12
Doubling your payment doesn't just halve the time โ it slashes interest because less accrues each month.
Frequently asked questions
Why is my balance barely moving?
At 25% APR on $8,000, about $167/month is pure interest. A $200 payment only cuts $33 of debt โ that's the minimum-payment trap.
Should I use a balance transfer card?
0% intro APR cards can save a fortune if you pay the balance before the promo ends. Watch the transfer fee (usually 3โ5%).
Payoff vs investing?
Credit card APRs (20โ30%) dwarf investment returns (~10%). Kill card debt first โ it's a guaranteed 25% return.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.