How long until the balance is gone, and what it costs. Compare fixed payments vs. minimum payments and see what a small extra payment saves.
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How long until the balance is gone, and what it costs.
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See how much faster and cheaper a small extra payment makes it.
Time to debt-free
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Balance over time
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Why minimum payments are a trap
Most cards set the minimum at interest plus about 1% of the balance, or a flat 2 to 3% of the balance. Because the payment shrinks as the balance shrinks, the debt lingers: a $6,800 balance at 25% APR paid at the minimum can take well over a decade and cost more in interest than the original purchases.
A fixed payment, keeping the dollar amount constant even as the balance falls, is the simplest escape, and every extra dollar goes straight to principal.
Payoff strategies
Avalanche: pay extra on the highest-APR card first, the mathematically cheapest route.
Snowball: clear the smallest balance first for momentum; costs slightly more interest.
Balance transfers: 0% intro APR offers help only if the balance is gone before the promo ends, and mind the 3 to 5% transfer fee.
Stop new charges on any card you are paying down, or the finish line keeps moving.
It depends on the balance, the APR, and how much you pay each month. Paying only the minimum (often 2 to 3% of the balance) can stretch repayment over many years because most of the payment goes to interest. A fixed monthly payment well above the minimum clears the balance much faster.
Why are minimum payments a trap?
Most cards set the minimum at interest plus about 1% of the balance, or a flat 2 to 3% of the balance. Because the payment shrinks as the balance shrinks, the debt lingers: a $6,800 balance at 25% APR paid at the minimum can take well over a decade and cost more in interest than the original purchases.
What is the debt avalanche vs. snowball method?
The avalanche method puts extra payments toward the highest-APR balance first, which is the mathematically cheapest route. The snowball method clears the smallest balance first for psychological momentum, at a slightly higher interest cost.
Do balance transfer cards help pay off debt?
A 0% introductory APR balance transfer can help, but only if the balance is fully paid before the promo period ends. Watch the 3 to 5% transfer fee, and avoid adding new charges to the old card.