Find out when your balance hits zero, and what paying a bit more each month saves.
Debt-free in
Interest paid along the way: $2,991
| Total paid | $8,991 |
|---|---|
| Interest this month | $114.50 |
| Payment to finish in 24 months | $313.94 |
Card minimums are often around 1% of the balance plus that month's interest. That clears the interest but barely touches the debt. Paying a fixed amount above the minimum, and not adding new charges, is what makes the balance move.
It depends on the balance, the APR and your payment. Each month interest is added (APR ÷ 12 × balance) and your payment is subtracted. If the payment is not larger than the monthly interest, the balance never goes down.
The avalanche method pays the highest-APR card first and saves the most interest. The snowball method pays the smallest balance first for quick wins. Both work if you keep going; pick the one you will stick with.
A 0% intro APR transfer can save a lot of interest if you can clear the balance before the promo ends. Account for the transfer fee, often 3% to 5% of the amount moved.