Find out how long it will take to clear a credit card balance and how much interest it will cost you. Then see how much time and money you’d save by paying a bit more each month.
Loading the tool…
Why minimum payments take so long
Each month, interest is added to your balance before your payment comes off. If you only pay a little more than the interest, most of your payment goes to the card company and the balance barely moves. Raising the payment, even slightly, sends more of it to the balance.
Worked examples
All on a £3,000 balance at 24.9% APR with no new spending.
| Monthly payment | Time to clear | Total interest |
|---|---|---|
| £75 | 7 years 3 months | £3,471 |
| £100 | 4 years | £1,744 |
| £150 | 2 years 3 months | £916 |
| £200 | 1 year 7 months | £631 |
Paying £75 a month costs more in interest than the original balance. Doubling to £150 cuts the interest by about £2,500.
Ways to clear it faster
- A 0% balance transfer card can stop interest for a set period. Check the transfer fee and pay it off before the offer ends.
- Pay the highest-rate card first (the avalanche method) to pay the least interest overall.
- Set a fixed payment by direct debit, rather than the minimum, which falls as the balance falls.
- If you’re struggling, free debt advice is available from services such as StepChange and Citizens Advice.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on your balance, rate and payment. £3,000 at 24.9% takes about 2 years 3 months at £150 a month, but over 7 years at £75.
Is it better to pay more than the minimum?
Yes. Even small increases cut the time and interest dramatically, because more of each payment reduces the balance.
Does this work for any currency?
Yes. Enter amounts in your own currency; the maths is the same.
Should I pay off a credit card or save?
Card interest is usually far higher than savings interest, so clearing it first normally saves more, though it’s sensible to keep a small emergency fund.
Sources
Last updated: