Using a Credit Card Payoff Calculator to Get Out of Debt Faster

Getting out of credit card debt can feel like an uphill battle High interest rates coupled with only making minimum payments means it can take years to become debt free, But using a credit card payoff calculator can help you see the light at the end of the tunnel

In this article, we’ll cover what a credit card payoff calculator is, the key information you need to use one, and how it can help motivate you to pay off debt faster.

What is a Credit Card Payoff Calculator?

A credit card payoff calculator is an online tool that shows you how long it will take to pay off your credit card balance. It factors in:

Your current credit card balance
Your interest rate
Any annual fees
The amount you plan to pay each month

With this information, the calculator estimates how many months it will take until the balance is paid in full. It also shows how much total interest you’ll pay over the repayment period.

Credit card payoff calculators help you visualize your payoff timeline. You can adjust the payment amount to see how increasing payments accelerates debt repayment.

Many credit card companies like Capital One and Bankrate provide free online payoff calculators. You can also find calculators on sites like Calculator.net.

Key Information You’ll Need

To use a credit card payoff calculator. you’ll want to have these details handy

Current balance: Your total unpaid balance across all cards. You can log into your accounts to see your balances.
Interest rate: The annual percentage rate (APR) on each card. This is usually listed on your statement.
Annual fees: Some cards charge annual fees. Check your statements or card member agreements.
Monthly payment: Decide the amount you can afford to pay each month toward your balance.

With this information entered correctly, the calculator will show an accurate payoff estimate.

How a Payoff Calculator Can Motivate You

Seeing how long it will realistically take to pay off your balance can light a fire under you.

For example, let’s say you have a $5,000 balance on a credit card with a 20% APR. If you only pay the 2% minimum payment of $100 a month, it will take over 9 years to pay off and cost $5,534 in interest!

But by using a payoff calculator, you see that increasing your monthly payment to $250 shortens the payoff timeline down to 2 years and saves you $2,270 in interest.

This visualization can give you extra motivation to find room in your budget to pay more than the minimums. Setting a monthly payment goal and watching the balance decrease over time just might keep you on track.

Strategies to Pay Off Debt Faster

If you want to pay off your credit cards more quickly, here are some tips:

Pay more than the minimums. Increasing payments by any amount will lower interest and pay off the balances faster.
Make bi-weekly payments. Making half your monthly payment every two weeks will add an extra monthly payment each year and shave off time.
Pay extra windfalls. Putting tax refunds, bonuses, gifts or other extra money toward balances accelerates payoff.
Consolidate debt. Transferring high-interest balances to a 0% APR card for 12-18 months can help you pay down debt interest-free.
Take out a personal loan. If you have good credit, you may qualify for a personal loan at a lower interest rate to pay off your cards.
Balance transfer. Moving your credit card balances to a new card with a 0% intro APR period can temporarily halt interest charges as you pay down the debt.
Ask for lower APRs. Call your card companies and request a lower interest rate. If you’ve been a long time customer with good standing, they may approve your request.
Increase income. Pick up a side gig like dog walking, tutoring or ride sharing to bring in extra cash that can be used toward balances.

Stay Motivated

It takes both planning and perseverance to become debt free. But free credit card payoff calculators make it easy to estimate your payoff timeline.

Seeing progress can encourage you to keep paying more than the minimums. Stick to your monthly payment goals and you’ll be that much closer to living debt-free!

credit card payoffcapital one credit card payoff calculator

How Bankrate’s credit card payoff calculator works

Don’t let credit card debt rule your life. With our Credit Card Payoff Calculator, it’s easy to get a handle on your debt. Just input your current card balance along with the interest rate and your monthly payments. We’ll help you determine how many months it will take to free yourself from debt. Additionally, you can also tell us how many months you would like for your debt to be resolved. Our dynamic Credit Card Payoff Calculator will help crunch the numbers to give you a clearer picture.

Interested in a balance transfer credit card?

Balance transfer credit cards typically have a 0% introductory rate. This means you could transfer your credit card debt and not have to deal with interest for several months or even a year (depending on the card). While our Credit Card Payoff Calculator assumes an introductory APR of 18 months, some can be as low as 6 months.

If you want to pay off your credit card debt faster, then a balance transfer credit card might be the best way to go about it. In our Credit Card Payoff Calculator, we break down what your monthly payments might look like for an 18 month 0% introductory rate card. In order to make the most of that window of interest-free bliss, you may need to make higher monthly payments. Provided you have the financial wiggle room, a balance transfer card is a fast way to handle that credit card debt. If you want to pay off your credit card debt faster, then a balance transfer credit card might be the best way to go about it. In our Credit Card Payoff Calculator, we break down what your monthly payments might look like for an 18 month 0% introductory rate card. In order to make the most of that window of interest-free bliss, you may need to make higher monthly payments. Provided you have the financial wiggle room, a balance transfer card is a fast way to handle that credit card debt.
Pros:
- They provide an easy way to pay off your balance as soon as possible by taking advantage of the 0% introductory rate.
- You’ll save money during that window of 0% interest.
Cons:
- To make the most of your 0% introductory rate, you might have to make higher monthly payments than you would on a balance spread out over several years.
- Some balance transfer credit cards come with transfer fees that will add to your outstanding balance.
Pros:
- They provide an easy way to pay off your balance as soon as possible by taking advantage of the 0% introductory rate.
- You’ll save money during that window of 0% interest.
Cons:
- To make the most of your 0% introductory rate, you might have to make higher monthly payments than you would on a balance spread out over several years.
- Some balance transfer credit cards come with transfer fees that will add to your outstanding balance.
First and foremost, look for a balance transfer credit card with nine to 18 months. Under federal law, the intro rate must last at least six months. Try to give yourself enough breathing room to pay off your outstanding balance without worrying about interest. You’ll also want to use our Credit Card Balance Transfer Calculator to help you determine if you can pay off that balance before the promotional period ends. While many balance transfer cards offer a large window of 0% introductory rates, the caveat can be high interest once the period ends. It’s also important to limit any additional credit card charges. Our Home Budget Calculator can help with that. This tool – used in conjunction with our Credit Card Payoff Calculator – can paint a clearer picture of where your money is going so you can prioritize your spending and avoid any impulsive card charges. If you follow these tips, you’ll be well on your way to effectively using your balance transfer card to get yourself out of debt. First and foremost, look for a balance transfer credit card with nine to 18 months. Under federal law, the intro rate must last at least six months. Try to give yourself enough breathing room to pay off your outstanding balance without worrying about interest. You’ll also want to use our Credit Card Balance Transfer Calculator to help you determine if you can pay off that balance before the promotional period ends. While many balance transfer cards offer a large window of 0% introductory rates, the caveat can be high interest once the period ends. It’s also important to limit any additional credit card charges. Our Home Budget Calculator can help with that. This tool – used in conjunction with our Credit Card Payoff Calculator – can paint a clearer picture of where your money is going so you can prioritize your spending and avoid any impulsive card charges. If you follow these tips, you’ll be well on your way to effectively using your balance transfer card to get yourself out of debt.

How to Pay Off Your Maxed Out Credit Cards with ZERO Cashflow!!!| @JustJWoodfin

FAQ

How long does it take to pay off $2000 in credit card debt?

It will take 24 months to pay off $2,000 with payments of $100 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.

How long does Capital One give you to pay off your credit card?

Credit card grace periods For example, Capital One’s grace period is at least 25 days. Grace periods are usually between 25 and 55 days. And if you pay your bill in full each month, you won’t be charged credit card interest on your purchases. But if you pay less than the full amount, interest may begin to accrue.

How long would it take to repay a $2000 credit card debt at a 19% interest rate by making only the minimum required payment of $25 month?

It would take 6 years and 9 months to repay a $2,000 credit card debt at a 19% interest rate by making only the minimum required payment of $25/month. So, the correct answer is 6 years, 9 months.

How to pay off $5000 credit card debt fast?

Pay the minimum payment on the low interest card, and pay as much as you possibly can per month on the high interest card. When that card is paid off, do the same for your second card. When they are both paid off, put one bill on each card, like your cell phone or car insurance, and pay them both off every month.

What is a credit card payoff calculator?

A Credit Card Payoff Calculator is your financial sidekick, helping you figure out how long it will take to pay off your credit card balance based on your current payments. It can show you how different payment amounts or strategies can speed up your payoff time and reduce the interest you’ll pay over time.

How can a capital one cardholder reach out?

There are a number of ways Capital One cardholders can reach out. 2. Credit card balance transfers Balance transfers involve moving debt from one credit card to another. Consolidating debt could make payments more manageable, especially if a new card has a lower annual percentage rate (APR).

How do I pay off credit card debts each month?

There are multiple ways to approach paying off credit card debts each month. The Credit Cards Payoff Calculator uses a method known as the “Debt Avalanche method.” The calculator also assumes that no further transactions are made on any of the credit cards, minimum payments stay the same, and interest rates are static.

How does Capital One autopay work?

Capital One cardholders can set up AutoPay to make automatic monthly credit card payments. Capital One bank customers can also set up Bill Pay from their bank accounts. When you make the minimum payment on your credit card each month, it can help you keep your account in good standing and avoid late fees.

How long does it take to pay off a credit card?

You can try it for yourself using the credit card payoff calculator below. So say you have a $2,000 balance on a card with no annual fee and an APR of 20%. If you can pay $100 a month, it might take you 25 months to pay off the debt. If the card has the same APR but an annual fee of $100, it might take 29 months.

How do I pay off my credit card?

You can plan to pay off your credit card using either the avalanche or the snowball method. With the avalanche method, you focus on paying off the debt with the highest interest rate first. Once it’s paid off, you then move to the next high-interest debt, in that order, until all your debts are paid off.