Frequently asked questions
Why does paying only the minimum take so long?
Minimum payments are typically 1–3% of the balance. Most of that goes to interest initially, leaving very little to reduce the principal. As the balance slowly drops, the minimum also drops, further slowing progress. A fixed higher payment is far more effective.
How much should I pay to clear the card in a reasonable time?
Aim for at least 2–3 times the minimum payment. The more you pay above interest, the faster principal drops. Use this calculator to compare scenarios and find a payment that clears the debt within 2–3 years.
Does this account for new purchases?
No. This assumes you stop using the card and pay down the existing balance only. New charges add to the balance and extend the payoff timeline significantly.
What is APR vs interest rate on a credit card?
For credit cards, APR and interest rate are effectively the same thing — the annual rate applied to your balance monthly. Unlike mortgages, there are no separate loan fees baked into a credit card APR.
Should I pay off the highest-rate card first?
Mathematically yes — the avalanche method (highest rate first) saves the most interest. If motivation matters more, the snowball method (lowest balance first) gives quicker wins. See the Multiple Cards Payoff Calculator to compare both.