How long will it take to pay off your credit card balance?
Your current credit card balance — the total amount you owe.
Find this on your credit card statement. Average US credit card APR is about 22%.
Enter how much you plan to pay each month. More than the minimum saves significantly.
See your payoff date, total interest cost, and how much extra payments save you.
Where B = balance, r = monthly rate (APR ÷ 12), P = monthly payment. This calculates how many months until your balance reaches zero.
The debt avalanche method (highest interest first) saves more money, while snowball (smallest balance first) gives faster wins.
Even $50 extra per month toward your loan principal can shave years off your payoff timeline.
It depends on your balance, rate, and monthly payment. Example: $5,000 balance at 22% APR with $150/month minimum takes 4 years 2 months and costs $2,400 in interest. Increase to $250/month: paid off in 2 years, $1,200 in interest — saving $1,200. The minimum payment trap is real: paying only the minimum on $5,000 at 22% could take 14+ years.
Two proven methods: Avalanche (highest interest rate first) saves the most money mathematically. Snowball (smallest balance first) gives quick psychological wins. Both work — pick what keeps you motivated. Also consider: 0% balance transfer cards (typically 15-21 months at 0% with 3-5% transfer fee), which can save hundreds in interest if you pay off within the promo period.
Credit cards use daily compounding: your APR ÷ 365 = daily rate. On 22% APR, that's 0.0603%/day. Each day, the bank calculates: balance × daily rate = daily interest charge. If you carry $3,000, that's $1.81/day or $54/month in interest alone. This is why even small balances grow quickly — and why paying more than the minimum is crucial.
No — this is a common myth. You do NOT need to carry a balance to build credit. What helps your score: using your card regularly, paying the full statement balance each month (avoiding interest), and keeping utilization below 30% (ideally under 10%). Carrying a balance only costs you interest and can hurt your score if utilization is too high.
Usually no. Closing old cards reduces your total available credit (increasing utilization ratio) and shortens your credit history length — both hurt your score. Better strategy: keep old cards open with a small recurring charge (like a subscription), and set up autopay. Exception: close cards with high annual fees you're not using, as the fee isn't worth the credit history benefit.