Paying Off Credit Card Debt With Minimum Payments
This calculator is designed to show you how long it will take to pay off your credit card and how much interest you will pay if you only make the minimum monthly payment.
Financial Analysis (Switch to Plain English)
| |
Minimum Pmts. |
Fixed Pmts. |
| Total Payments : |
$19,081.83 |
$13,030.01 |
| Payoff Timeline : |
18 Years 5 Months |
3 Years 2 Months |
| Time Saved : |
15 Years 3 Months |
| Total Interests Paid : |
$9,081.83 |
$3,030.01 |
| Interest Savings : |
$6,051.82 |
Plain English Help (Switch to Financial Analysis)
Credit card minimum payments may seem convenient on the surface, but only making the minimum payment each month can be quite costly – and, it can take you several years to finally get your credit card paid off.
Let's say you have a $10,000.00 balance on a credit card with a 17.500% APR. If your minimum payment is $300.00 and that is all you pay each month, it will take you 18 year(s) and 5 month(s) to finally get that card paid off (assuming you don't add anymore debt to the balance). You will have also paid $6,051.82 in interest alone.
If you send a fixed $350.00 payment, on the other hand, this extra money will make it possible for you to pay off that same balance in just 3 year(s) and 2 month(s) – that is 15 year(s) and 3 month(s) sooner than if you paid just the minimum payment. You will also only pay $3,030.01 in interest, saving you $6,051.82.