Credit Card Payoff Calculator: Your Path to Debt Freedom

Break the cycle of high-interest debt.

Credit card debt is one of the most significant barriers to family financial health. Because of compounding interest and low minimum payments, it can take decades to pay off even a small balance. Our Credit Card Payoff Calculator helps you create a concrete plan to become debt-free by showing you exactly how much you need to pay each month to hit your goal.

The “Minimum Payment” Trap

Credit card companies often set the minimum payment at just 1% to 2% of the balance plus interest. While this keeps your monthly cost low, it ensures you stay in debt for as long as possible.

Why Small Increases Matter:

If you have a $5,000 balance at 20% APR:

• Paying only the minimum: It could take over 20 years to pay off, costing you nearly $6,000 in interest alone.
• Paying a fixed $250/month: You’ll be debt-free in 24 months and save over $5,000 in interest.

Strategies for Paying Off Debt

On familyhealthcalc.com, we recommend using one of these two proven methods to accelerate your payoff:

1. The Debt Avalanche: Pay off the card with the highest interest rate first. This saves the most money in the long run.
2. The Debt Snowball: Pay off the card with the smallest balance first. This provides quick “wins” and psychological motivation to keep going.
3. Balance Transfers: In the US and UK, you may qualify for a 0% APR balance transfer card. Use this calculator to see how much you can save if you move your balance to a 0% rate for 12–18 months.