Credit Card Payoff Calculator

Credit cards use compound interest. If your minimum payment barely exceeds the monthly interest, most of your payment goes to interest rather than reducing principal. A $5,000 balance at 22.99% APR with only minimum payments can take 15+ years to pay off.

The debt avalanche method prioritizes paying off debts with the highest interest rate first while making minimum payments on all others. This minimizes total interest paid. The debt snowball method (paying smallest balances first) is less optimal financially but provides psychological wins.

Options include: (1) Calling your issuer and asking for a rate reduction, (2) Balance transfer to a 0% APR card (watch transfer fees), (3) Consolidating to a personal loan at lower rate, (4) Improving your credit score to qualify for better rates.