Credit Card Payoff Calculator
Stop guessing. See exactly when you will be debt-free and how much interest you can save by adding just $50 to your payment.
Card Details
Paying $200/mo
Debt-Free In
Total Cost of Debt
$6,405.04
You will pay $1,405.04 in interest fees.
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Debt Snowball
Pay off your smallest balance first, regardless of interest rate.
- ✅ Best for: Motivation & Psychology
- ✅ Quick wins early on
Debt Avalanche
Pay off your highest interest rate first, regardless of balance.
- ✅ Best for: Saving money (Math)
- ✅ Fastest path to debt-free
What is the Credit Card Debt Trap?
The Debt Trap occurs when you only make the minimum monthly payment. Because interest rates (APR) on credit cards are high (often 20%+), the minimum payment barely covers the interest charges. This means your principal balance stays the same, and you can end up paying for 10-20 years for a small purchase.
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Frequently Asked Questions
What is the Debt Snowball method?
The Debt Snowball method involves paying off your smallest debts first while making minimum payments on larger ones. This builds psychological momentum as you see debts disappear quickly.
What is the Debt Avalanche method?
The Debt Avalanche method prioritizes paying off the debt with the highest interest rate first. Mathematically, this saves you the most money in the long run compared to the Snowball method.
What happens if I only make the minimum payment?
Making only minimum payments (usually 2-3% of balance) keeps you in debt for decades. Most of your payment goes to interest, not the principal, causing the 'Debt Trap'.
Does paying off a credit card improve my credit score?
Yes! Lowering your 'Credit Utilization Ratio' (the amount you owe vs. your limit) is one of the fastest ways to boost your credit score. Ideally, keep utilization below 30%.
Debt Snowball vs. Avalanche: Which Payoff Method is Faster?
Feeling overwhelmed? A step-by-step guide to organizing your debts, negotiating lower rates, and choosing the right payoff strategy.
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