How Long Will it Take to Pay Off a Credit Card Calculator

Take Control of Your Credit Card Debt with These Practical Strategies

Credit cards are useful financial tools that can come in handy for unexpected scenarios or to help you build a credit history and improve your credit score. But when your balance begins to climb, paying off credit card debt can seem like a daunting task—especially if you're unsure about how long it might take to do so. But by using a Credit Card Payoff Calculator, you can get a clearer picture of your debt and how to pay it off with a realistic plan that is comfortable for your financial situation.

To use our calculator and see an estimate of how many months it will take you to pay off your existing balance at your current interest rate, please have the following information available:

• Card Balance: This is the total purchase amount plus interest accrued owed at the current time on your credit card.
• Interest Rate: The annual percentage rate, or APR, that your credit card company charges you to use your card and maintain an ongoing balance.
• Monthly Charges: Recurring amounts you are charging to your credit card each month, if applicable.
• Monthly Payment: The amount you pay toward your monthly credit card balance. This will either be reflected as a minimum payment as dictated by your credit card company and current balance or a higher amount you have committed to paying monthly.

The Top Factors That Influence Credit Card Debt Payoff

Generally, the top common factors that will influence your credit card payoff strategy are the following:

1. Interest Rate (APR): A higher APR means more interest is added to your balance each month, extending the payoff time—making it one of the most significant factors in determining your payoff time.
2. Monthly Payment: Whether it is the minimum amount due or a larger sum, the amount you can pay each month affects how quickly you can pay off your debt. Paying only the minimum amount will prolong the process while paying more will shorten it.
3. Outstanding Balance: Larger balances will take longer to pay off unless you can commit to making higher payments at a consistent rate or in the form of larger lump-sum payments.
4. Additional Charges and Fees: Late fees, cash advance fees, and other charges can increase your balance and extend the time needed to pay off your debt.

7 Tips to Pay Off Credit Card Debt Faster

1. Increase Your Monthly Payments: Even a small increase on what you make as a monthly payment can make a big difference in the long run.
2. Always Pay More Than the Minimum: If you aren't consistently able to make higher monthly payments, always aim to pay at least a little bit more than the minimum amount due to help reduce interest charges.
3. Make High-Interest Debt a Priority: If you hold high balances on multiple cards, pay off those with the highest interest rates first.
4. Use Windfalls Wisely: If you receive a tax refund, bonus at work, an unexpected monetary gift from family, or any other type of surplus financial gain, apply it directly to your credit card balance.
5. Avoid Adding Debt: It's tempting not to use a credit card for this or that when you have the credit available to you, but resist using your credit card for new purchases while you’re paying off your existing debt.
6. Consider Balance Transfers: If your credit score is high enough, you may be able to apply for a balance transfer card with a 0% introductory APR for a set number of months—even years, in some instances. Eliminating accruing interest is a helpful tool in paying off debt faster, but please note that many balance transfer offers typically charge a small fee (often 3-5%) per transfer. Even so, that one-time fee may be less than the interest amount you would pay during the same period with an APR. Another great option is a debt consolidation loan. If you have multiple credit cards with varying interest rates, combining them all into one payment at a set rate is possible. This not only makes your finances more streamlined, but it also could save you thousands!
7. Talk to a Financial Counselor: No matter how financially literate you are, debt can build quickly and become a burden. It's okay to seek help from a professional who can help assess your situation and put you on the right path toward freedom from credit card debt.

At UMCU, we offer credit card options that come with APRs as low as 8.99% for qualified applicants, no annual fees, no-fee balance transfers, and more. If you are interested in making the switch for potentially lower rates, check out our current offers.