How credit card interest works
Credit cards charge interest every month on the balance you carry. Divide the APR by 12 for the monthly rate: at 22% APR that's about 1.83% a month. On a $6,000 balance, roughly $110 of your first payment goes to interest before a single dollar comes off the debt. The bigger your payment, the more of it reduces the balance, and the faster interest shrinks.
The minimum payment trap
Card issuers set the minimum payment low, often the month's interest plus 1% of the balance, with a floor of about $25. Because the minimum falls as the balance falls, it can take decades to clear. In our example, paying only the minimum on $6,000 at 22% takes almost 21 years and costs roughly $9,900 in interest. Paying a fixed $250 a month clears it in 32 months with about $2,000 of interest.
Strategies to pay off credit cards faster
- Avalanche method: pay the minimum on every card and put every extra dollar toward the card with the highest APR. This saves the most interest.
- Snowball method: put extra money toward the smallest balance first. You save a little less, but quick wins help many people stay motivated.
- Balance transfer: moving debt to a 0% intro-APR card can stop interest for 12–21 months. Watch for a transfer fee (often 3–5%) and have a plan to clear it before the rate jumps.
- Debt consolidation loan: a personal loan at a lower rate turns card debt into one fixed payment with an end date.
- Call your card issuer. Asking for a lower APR works more often than people expect, especially with a good payment history.
Setting a payoff goal
Switch the calculator to "Be debt-free by a set time" to see the monthly payment you'd need. For example, clearing $6,000 at 22% in 24 months takes about $311 a month, with around $1,470 of interest in total.