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See how long it takes to pay off debt and how much interest you will pay
Paying $400/month on $15,000 of credit card debt at 18.9% APR takes about 4.6 years (55 months) to pay off, with $6,886 in total interest paid.
Paying $500/month on $8,000 at 22% APR takes about 1.5 years (19 months) to pay off, with $1,404 in total interest. The aggressive payments save significantly compared to minimum payments.
Paying only $100/month on $5,000 at 18% APR takes about 7.8 years (94 months), with $4,311 in total interest — nearly doubling the original debt.
Minimum payments (typically 1-3% of balance) barely cover the monthly interest charge, so most of your payment goes to interest rather than reducing the principal. This keeps you in debt for decades and can cost you more in interest than the original debt.
Two popular strategies: The Avalanche method (pay highest interest rate first) saves the most money. The Snowball method (pay smallest balance first) provides quick wins for motivation. Both work — choose the one you will stick with.
If your monthly payment is less than the monthly interest charge, your debt will grow instead of shrink. You need to either increase your payment or lower your interest rate (through balance transfer, consolidation, or negotiation with your creditor).