Find out how fast you can become debt-free. Compare minimum payments against extra contributions and see your interest savings on UtilityBase.
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A cardholder owes $12,000 at 21.5% APR. Minimum payment is $300/mo. They commit an extra $150/mo ($450 total).
Adding $150/month cuts the payoff time from nearly 6 years down to 3.1 years, immediately putting $4,876.27 back in the borrower’s pocket.
The Debt Avalanche focuses on paying extra towards the highest APR debt first to minimize total interest paid mathematically. The Debt Snowball focuses on eliminating the smallest balance first to build quick psychological momentum.
Credit card minimum payments are typically calculated as interest plus only 1% to 2% of the principal balance. Because principal reduction is microscopic in early months, the balance continues accruing heavy daily interest charges.
A 0% intro APR balance transfer card can save hundreds in interest if you can pay off the entire transferred balance within the promotional window (usually 12–21 months) and account for the upfront transfer fee (typically 3%–5%).