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Credit Card Payoff Calculator
Credit card debt feels like a trap because it is one. Minimum payments are designed to keep you paying forever. Use this tool to plot your escape.
Credit Card Details
The "Minimum Payment" Trap
If you owe $5,000 at 20% APR and only pay the minimum (usually ~2%), it will take you over 15 years to pay it off. And you'll pay $7,000+ in interest. You're basically buying the bank a used car.
💡 Real Talk from David Chen, CFA
The math is brutal: Interest Rate > Investment Return. There is no investment in the world that guarantees you a 20% return like paying off credit card debt does. Stop investing, stop saving (except for a tiny emergency fund), and attack this debt with everything you have.
Avalanche vs. Snowball
The Avalanche (Math Winner): Pay off the card with the highest interest rate first. You save the most money.
The Snowball (Psychology Winner): Pay off the smallest balance first. You get a quick "win" which motivates you to keep going.
Honestly? Just pick one. The "best" method is the one you actually stick to.
⚠️ Common Mistake: The "0% Balance Transfer" Shuffle
Transferring debt to a 0% APR card buys you time (usually 12-18 months). But if you don't pay it off by then, you often get hit with deferred interest—meaning they charge you interest all the way back to Day 1. Only do this if you are 100% sure you can pay it off in time.
How to Negotiate Your Rate
Yes, you can do this. Call the number on the back of your card and say:
"Hi, I've been a customer for 5 years. I'm looking at other cards with lower rates. Can you lower my APR to match them?"
It works about 50% of the time. A 10-minute call could save you hundreds of dollars.
Reviewed by David Chen, CFA
Chartered Financial Analyst
David hates credit card debt with a passion and wants to help you destroy it.
Frequently Asked Questions
How long does it take to pay off credit card debt?
With minimum payments (2% of balance)? About 15 years for $5k at 20% APR. But if you pay $150/month instead, you'll be done in 42 months and save thousands in interest. Every extra dollar you throw at it cuts months off your sentence.
Should I pay off credit cards or invest?
Pay off the debt. A 20% APR card is a guaranteed -20% return on your money. No investment guarantees 20%+ returns. The math is brutal and simple: kill the debt first, then invest.
What's better: debt avalanche or debt snowball?
Avalanche = pay highest interest rate first (saves more money). Snowball = pay smallest balance first (psychological wins). Honestly? Pick whichever you'll stick to. The "best" method is the one you actually follow through on.