Use this credit card payoff calculator to compare the cost of three debt repayment plans.
Enter how much credit card debt you carry and choose three repayment options:
This is the amount you owe on your credit card (or line of credit) as shown on your last statement and the annual interest rate charged by your credit card (or line of credit) issuer on outstanding balances.
Your minimum payment is the required amount payable on your credit card (or line of credit) before your credit card company charges you a late payment fee. Your minimum payment is calculated each month as the greater of a fixed amount (eg $10) or a percentage of your outstanding balance (eg 3%). Minimum payment requirements can be found on your statement as part of the terms and conditions.
Based on the information you’ve provided your first minimum payment amount is $0.
Your minimum monthly payment will decrease each month as you pay off your balance.
Fixed Monthly Payment amount must be greater than or equal to your first Minimum Monthly Payment and cannot exceed your balance.
Enter a fixed amount that you could apply to your credit card debt (or line of credit) every month.
Enter the amount of time you would like to take to pay off your debt.
Strategy: As you can see if you pay only the minimum payment each month on your debt you will never really be debt free. Based on your fixed payment of $FIXEDPMT, you will be debt free in Y years and M months.
However if you find you cannot afford to pay that much every month you may need to get help reducing your credit card debt. If this is your only debt, credit counselling may be your best option. If you have more debts, get an expert's opinion on your situation and the options available to you to get out of debt faster.
This calculator is for demonstration purposes.