Credit Card Payoff Calculator

Because the minimum is worked out as a share of what you owe. As the balance falls, the payment falls with it. You are always paying a little less, so the finish line keeps moving away. Paying the same fixed amount every month instead - even the exact amount you are paying today - can cut years off the debt.

Cards do it in one of two ways, and which one you have changes the answer enormously. Some ask for a flat percentage of the balance, often around 2%. Others ask for the interest plus a small slice of the principal, often 1%. Both are offered here. Check your statement - it will say.

Yes. If your rate is high and the minimum is a low percentage, almost all of it goes on interest and the balance barely moves. On a 24% card with a 2% minimum, the payment is only a pound or two above the interest - the debt can run for a lifetime. The calculator tells you when this is happening.

Pick a fixed amount you can genuinely afford and pay exactly that every month, never less, regardless of what the statement asks for. The comparison table shows what different amounts do. Small increases have a surprisingly large effect, because every extra pound comes straight off the principal.

A credit card at 20-something percent costs you far more than savings will earn. Clearing it is usually the better return, and it is guaranteed. The common exception is keeping a small cash cushion first, so an unexpected bill does not put you straight back on the card.

Two sensible approaches. Highest rate first saves the most money. Smallest balance first clears a card soonest, which some people find easier to stick with. Our debt payoff calculator compares both properly across several balances.