The Fastest Way to Pay Off Credit Card Debt

The Fastest Way to Pay Off Credit Card Debt

Credit cards compound interest daily, so the gap between a minimum payment and a larger one is huge over time.

Why minimums fail

Minimum payments are often set just above the monthly interest, so almost nothing touches the balance. You can stay in debt for decades, paying mostly interest.

Pay more, save big

A $5,000 balance at 22% APR with a $200 payment clears in about 34 months with roughly $1,770 of interest. Raise the payment to $300 and you're done in about 20 months, interest down to about $1,020.

Which strategy

Use the avalanche method (highest APR first) to save the most interest, or the snowball (smallest balance first) for the motivational wins. Either beats minimums.

The credit card payoff calculator shows how long and how much it takes to clear a balance at any monthly payment — and what extra payments save.