# Credit Card Payoff Calculator

### How It Works

Credit cards with a low interest rate are hard to find. In fact, the average APR (Annual Percentage Rate) sits at around fifteen percent—that’s pretty high. You can look at this number and either roll your eyes & shrug your shoulders or work to ensure your creditors never get that much out of you. The Credit Card Payoff Calculator shows you how much interest you’ll have paid by the end of your payoff date. Use that information to give your debt a complete overhaul and start paying a monthly rate that helps you save on interest charges.

Here’s how:

1. Enter your credit card’s balance & interest rate.
2. Adjust the Monthly Payment to see how paying more can save you money in the long-run.

.

### How long will it take to pay off a credit card?

The time it takes to pay off your credit card depends on things like balance and APR/interest rates.

Balance: The credit card balance (the amount of money you’ve spent on your credit card) affects how much umph is needed to pay that card off. It’s true your interest rate remains the same, but while your card balance increases as does your monthly interest charge.

APR/Interest Rates: APRs (annual percentage rates) and interest rates differ slightly in purpose, but each takes a chunk out of the money you put toward paying off debt. Meaning, every time you make a payment, only some of it goes toward the owed balance—the rest goes toward interest. This forces people to make extra monthly payments so that more of their money will go toward actual debt. Read this article to learn more on the subject ofAlso, the key to a low interest rate is a good credit score; learn more here: Credit Scores

### Paying off my credit card faster

Pay more than the total minimum required each month with amortization. Amortization is the process of making regular principal and interest payments to eliminate debt. A lot of people like to use something called an amortization schedule—a table that details how much of your monthly payments go toward paying off a fixed interest. An amortization schedule helps its users see how to avoid paying a ton in interest.

Different banks and credit card companies let you negotiate a lower interest rate. Start with the credit cards you’ve had the longest—particularly the cards you’ve never missed a minimum payment on. And, remember to only ask about it when you’ve had a recent increased credit score or change in unemployment/employment status.

### Balance Transfer

If the interest rate is weighing you down, it’s time to request a transfer from your high APR account to the 0% offer and embrace the weightless wonder of no interest charges.

DIY debt settlement—just you and your creditor negotiate any changes to the amount you owe. However, you can expect a creditor to accept a DIY settlement only if you’re so backed up on payments that your credit’s already taken a hit.

Professional debt settlement—an agency negotiates changes for you. Working with a settlement agency is risky business—your credit seldom comes out unscathed, you're up to your nose in agency fees, and it’s not likely you’ll win the settlement.

Whatever debt elimination route you decide to go with, just remember to be careful, do your research, make a plan, and stick to it.

Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

Neither Banzai nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Banzai and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Banzai and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.