Paying off credit card debt can help you save money on interest charges, increase your credit score and improve your overall financial well-being. You can use this calculator to get a better idea of how long it'll take you to eliminate your credit card debt based on your balances, interest rates and monthly payments.
†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.
How to Use This Calculator
The credit card payoff calculator allows you to include up to five credit cards at a time. For each card, you'll enter the following details:
Note that when you enter the balance and APR, an estimated minimum payment will automatically show up in the third field. This field can be changed to match your actual payment amount, however.
When you click the Calculate button, you’ll see several things to help inform your debt payoff strategy, including:
- The month and year you’ll be debt-free
- The number of payments you’ll need to make
- Total interest you’ll pay
- Total payment amount, including interest and principal
You can also click on the Payment Schedule tab to see exactly how much of each payment will go toward interest and how much will go toward paying down your balance. As you define your debt strategy, you can enter different payment amounts to see how much time and money you’ll save.
How to Pay Off Credit Card Debt
Depending on your situation, you may have several different options to pay off your credit card debt. If you’re not planning to consolidate your credit card balances (more on that option in a minute), there are a few approaches you can use.
Debt Snowball Method
The debt snowball method involves making just the minimum payments on all of your credit cards except for the one with the lowest balance. Take any extra money you have to put toward your debt every month and apply it to that card.
Once that card is paid off, you’ll take the monthly payment you were putting toward it and apply that to the card with the next-lowest balance (on top of its minimum monthly payment). You’ll continue that same strategy until all of your balances are paid off.
Debt Avalanche Method
The debt avalanche method works similarly, but instead of targeting cards based on their balance, you’ll work on paying off the cards with the highest interest rates first.
Neither method is inherently better than the other, so choose the right one for you based on your goals and preferences. With the debt snowball method, for instance, you’ll be guaranteed to pay off smaller balances first, which can give you the wins you need to keep your motivation going.
With the debt avalanche method, focusing on higher interest rates first could save you more money on interest charges. Depending on the makeup of your credit card debt, however, those savings may not be much higher than what you’d achieve with the debt snowball approach.
Debt Snowflake Method
With the debt snowflake approach, you'll focus on using everyday savings to accelerate your repayment. Anytime you generate savings in some area of your financial life, you can allocate those funds toward extra debt payments. Examples include:
- Coupon savings at the grocery store
- Credit card cash back rewards
- Proceeds from a yard sale
- Savings from meals eaten at home rather than dining out
- Renting library books rather than buying new
You can employ the debt snowflake method on its own or in tandem with another payoff strategy.
Learn more >> What’s the Best Strategy to Pay Off Debt?
How Does Credit Card Debt Consolidation Work?
Credit card debt consolidation works by paying off your existing debt with a new credit card or personal loan, preferably with better terms. Depending on where your credit stands, debt consolidation can be an excellent way to pay off your debt faster and save money along the way.
Here’s a breakdown of ways to consolidate credit card debt.
Balance Transfer Credit Card
With a balance transfer credit card, you can transfer debt from one or more existing cards to a new one. Many balance transfer cards offer an introductory 0% APR promotion, which means you can pay off your debt interest-free during the promotional period.
Some of these cards charge an upfront fee of up to 5% of the transfer amount, but that may be worth it for the long-term interest savings.
Consider this option if you can afford to pay off the debt before the promotional period expires and you're confident you can stick to your repayment plan.
Personal Loan
You can use personal loans for just about anything, including debt consolidation. On average, personal loans charge much lower interest rates than credit cards, and you may be able to get a rate in the single digits if your credit is excellent.
Personal loans also offer the benefit of set repayment terms, which may be a better fit if you're worried about getting complacent with a minimum credit card payment.
Regardless of which option you choose, it’s important to avoid racking up balances on your paid-off credit cards. Otherwise, you could end up in an even more difficult financial situation.
Learn more >> Pros and Cons of Debt Consolidation
How Does Credit Card Debt Impact Your Credit Score?
Your credit utilization rate—the percentage of your credit limit that you’re using at any given time—is an important indicator of how you manage debt. As such, it’s one of the major factors that help determine your credit score.
Even if you're paying your balance in full every month, using up a lot of your available credit can negatively affect your credit score. However, that impact can be even more pronounced if your balance is increasing each month because you're not paying it off.
The good news is that your utilization rate changes along with your balance, so once you start paying down credit card debt, you'll see improvements to your credit score rather quickly.
Review Your Credit to Evaluate Your Options
As you think about the best way to tackle your credit card debt, checking your Experian credit report and FICO Score☉ can help you get a sense of what your options might be. If you have a good credit score—generally a FICO Score of 670 or above—debt consolidation could be beneficial.
However, if your score is below that, you may consider other accelerated debt payoff methods. Regardless of which approach you choose, continue to monitor your credit score regularly to keep track of your progress. This practice can also help you spot other areas of your credit history that you can address to increase your credit score.