Credit Card Payoff Calculator
How it works
Each month, interest is added at APR ÷ 12. The minimum payment (typically 1% of balance + interest, with a £5 floor) barely chips at the principal, especially early on.
A fixed monthly payment that's a few times the minimum can cut years and thousands off the cost. The single biggest win is moving the balance to a 0% balance transfer card.
Worked example
£3,000 balance at 24.9% APR.
- Minimum payments: ~26 years to clear, ~£4,300 in interest (£7,300 total)
- £150/month fixed: 24 months, ~£600 interest (£3,600 total)
- 0% balance transfer for 24 months: ~£90 fee, ~£0 interest
Who should use this
- •Anyone with credit card debt
- •People considering a balance transfer
- •Comparing snowball vs avalanche debt strategies
Common mistakes
- ×Paying only the minimum and assuming progress is being made
- ×Ignoring 0% balance transfer offers because of the transfer fee
- ×Adding new spending while paying off old debt
- ×Closing paid-off cards (lowers credit utilisation ratio and score)
Frequently asked questions
Why does the minimum payment trap people?▾
Because it's mostly interest. On a 25% APR card with 1%-of-balance minimums, ~£3k can take 25+ years to clear.
Are balance transfer fees worth it?▾
Almost always — a 3% fee on £3,000 is £90 vs £600+ in saved interest over 2 years.
Will paying off a card hurt my credit score?▾
No, it helps. But don't close the account — keeping the credit limit available improves your utilisation ratio.
Snowball or avalanche?▾
Avalanche (highest APR first) saves the most money. Snowball (smallest balance first) gives quicker wins for motivation.