How Much Is Your Credit Card Debt REALLY Costing You?
Answer a few quick questions to estimate how much interest you're really paying — and how long it may take to get out of debt.
Takes less than 60 seconds • Instant results
Why credit card interest is so expensive
Credit cards typically carry APRs between 18% and 29% — far higher than almost any other type of consumer debt. Because interest is compounded daily and added to your balance, you end up paying interest on top of interest. The longer a balance lingers, the more you pay for the same purchase.
Minimum payments are designed to keep you in debt. Most of each minimum payment goes toward interest, leaving the principal almost untouched. A $5,000 balance at 22% APR can take more than 20 years to pay off if you only pay the minimum.
How to reduce credit card debt faster
- • Always pay more than the minimum — even a small extra amount makes a big difference.
- • Stop adding new charges while you're paying down debt.
- • Target the highest-APR card first (avalanche method) to save the most on interest.
- • Consider a 0% balance transfer card or a lower-rate consolidation loan.
- • Automate payments so you never miss a due date.
How long does it take to pay off credit cards?
Timelines depend on your balance, APR, and monthly payment. A $3,000 balance at 22% APR paid at $150/month takes about 2 years. The same balance at minimum payments only can take 15+ years. Doubling your monthly payment typically cuts payoff time by more than half and saves hundreds — sometimes thousands — in interest.
Try More Quizzes
This tool provides estimates only and is for informational purposes.