See how long it takes to pay off a credit card balance, how much interest you'll pay, and the monthly payment needed to be debt-free by a target date.
Card interest is charged on the balance each month at APR ÷ 12. A minimum payment of around 2–3% of the balance barely covers the interest, so most of it never reaches the debt.
A fixed payment that stays the same as the balance falls clears the card far faster and saves most of the interest.
At $200 a month it takes just under 3 years and about $1,900 in interest. Paying only a 2% minimum can take decades.
Yes, that's the avalanche method and it saves the most interest. Use our Debt Payoff calculator to plan several cards.