The Credit Cards Payoff Calculator uses the debt avalanche method, the most cost-efficient payoff strategy, to work out how long it takes to clear several credit cards with a fixed monthly budget.
With $500.00 a month you will be debt-free in 3 years and 2 months.
| Total balance | $14,500.00 |
| Payoff time | 3 years and 2 months |
| Total interest | $4,471.20 |
| Payoff time paying only minimums | 6 years and 10 months |
| Interest paying only minimums | $10,696.02 |
| Card 2 paid off | 1 year and 4 months |
| Card 1 paid off | 2 years and 4 months |
| Card 3 paid off | 3 years and 2 months |
With the avalanche method you pay the minimum on every card and put every extra dollar toward the card with the highest interest rate. When that card is paid off, its whole payment rolls on to the next-highest rate. Because the most expensive debt disappears first, the avalanche always costs the least total interest.
Each month it adds interest to every balance (rate ÷ 12), pays each card's minimum, and sends what is left of your budget to the highest-rate card. It repeats until all balances are zero and reports the payoff time, the total interest and the month each card is cleared. It also shows how long paying only the minimums would take, for comparison.
Worked example: three cards totalling $14,500 with minimums of $310. Paying $500 a month instead of $310 clears all three years sooner and saves thousands in interest.
The debt snowball pays the smallest balance first instead. It costs a little more interest, but quick wins keep some people motivated. If you are likely to give up, snowball may still save more in practice; if you are disciplined, avalanche is cheaper.
Ask your card issuer for a lower rate; a good payment history often gets one. A 0% balance transfer card can stop interest for 12–21 months, though transfers usually cost 3–5% up front. A debt consolidation loan at a lower fixed rate can also help (see the Debt Consolidation Calculator). Above all, stop adding new charges while you pay down the old ones.
Why does paying only the minimum take so long? Minimums are set mostly to cover interest, so the balance shrinks very slowly.
Does closing paid-off cards hurt my credit? It can raise your utilization ratio; keeping old cards open with no balance often helps.
What if my budget is below the minimums? You must pay at least every minimum to avoid late fees.