Credit Card Payoff Calculator
Find out the real cost of your credit card debt. See how long minimum payments will take, and how much you can save by paying more each month.
The Real Cost of Credit Card Debt
The Minimum Payment Trap
Minimum payments (typically 2–3% of balance or £25, whichever is higher) are designed to maximise interest paid. A £3,500 balance at 22.9% APR with minimum payments can take 20+ years to clear and cost over £3,000 in interest alone.
The Interest Formula
Monthly interest = Balance × (APR ÷ 12 ÷ 100). On a £3,500 balance at 22.9%, that's £3,500 × (22.9/12/100) = £66.79 in interest the first month alone. Paying only the minimum barely dents the principal.
Fastest Payoff Strategies
Avalanche method: pay minimums on all cards, put all extra money toward the highest APR card. This minimises total interest paid. Snowball method: target the smallest balance first for psychological wins. Both work — the best strategy is the one you'll stick to.
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