Finance
Credit Card Payoff: Get Out of Debt
Calculate payoff time and interest for credit card debt.
Credit card debt averages 20%+ APR.
How Interest Works
Charged on average daily balance. $5K at 22% = ~$92/month interest.
Minimum Payment Trap
$10K at 20%, minimum only: 30+ years, $15K+ interest.
Strategies
- Fixed payment: Consistent extra
- Balance transfer: 0% for 12-21 months
- Consolidation: Lower-rate loan
Extra Payments
$100/month extra on $10K at 20%: 30+ years → 5 years, saves $12K+.
Frequently Asked Questions
Pay off $10K?
Minimum at 20%: 30+ years. $400/month: ~3 years.
Balance transfer?
If paying off during 0% period, yes. Watch 3-5% fees.
Avoid debt?
Pay full statement monthly. If not possible, reduce spending.