Credit Card Payoff Calculator
Credit card payoff strategies
If you have credit card debt, there are several strategies to manage and pay off your balances as efficiently as possible.
1. Larger monthly payments
One of the best ways to pay off credit card debt is to make more than the minimum monthly payment. This will help you pay off your debt faster and save on interest charges. Use our credit card payoff calculator to help determine how much extra you should pay each month.
2. Snowball method
The debt snowball method involves paying off your lowest loan balance while making minimum monthly payments on all other accounts. Once you’ve paid off the lowest balance, focus on paying off the next smallest balance. Repeat this process until you’ve paid off all your loans and credit cards.
3. Avalanche method
With the avalanche method, you pay off balances with the highest interest rates first. Once the highest rate balance has been paid off, focus on the second highest rate. Repeat this process until everything is paid off. With this strategy, you reduce the amount of interest you pay in the long run.
4. Personal loans
Another payoff option is to consolidate your debt with a personal loan. Personal loans often have lower interest rates than a credit card and have a fixed repayment period. However, you cannot use the loan to make additional purchases.
5. Balance transfers
Finally, simplify your finances and save money by transferring balances from high-rate cards to a lower-rate card. This strategy works much like a personal loan consolidation, except you can continue using your card for essential purchases. Just be careful not to exceed your budget!
