credit_card DEBT TOOLS

Credit Card Payoff

Destroy debt. See how extra payments can save you thousands.

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How It Works: See how long it takes to pay off credit card debt based on your current balance, APR, and monthly payment.

Key Inputs:
  • Card Balance: Total amount currently owed.
  • Interest Rate (APR): Annual Percentage Rate.
  • Monthly Payment: Amount you pay each month.


Note: Assumes no new charges are added to the card.
Months to Payoff
31
Total Interest Paid
$1,340
Debt Free Date
Aug 2026

Snowball vs. Avalanche: Which Method Wins?

Paying off credit card debt requires a strategy. Two popular methods dominate the personal finance world: the Debt Snowball and the Debt Avalanche.

The Debt Avalanche (Mathematically Superior)

Focus on the debt with the highest interest rate first. Pay minimums on everything else, and throw every extra dollar at the high-rate card. This saves you the most money in interest and gets you out of debt faster.

The Debt Snowball (Psychologically Superior)

Focus on the debt with the lowest balance first. Ignore the interest rates. Knocking out small debts gives you quick "wins" and motivation. Research from Harvard Business Review suggests this method is more effective for people who need momentum to stick with the plan.

The Credit Card Trap

Making only the Minimum Payment is a financial trap designed by banks. It typically covers interest plus a tiny fraction of the principal (often 1%). Pagar solo el mínimo en un saldo de $5,000 podría tomar más de 20 años en liquidarse.

Disclaimer: This calculator assumes a fixed interest rate. Most credit cards have variable rates that change with the Prime Rate.