Maria Adams, Credit Cards Moderator
@m_adams
It could take several years to pay off your credit card by making minimum payments. The exact amount of time depends on how much your issuer’s required minimum payment is and what your credit card’s interest rate is. For example, if your credit card debt is $2,000 and the minimum payment is the greater of 1% or $35, you would pay off your card in more than 9 years. That’s the timeframe, assuming your card has the average APR of existing credit card accounts (16.27%).
If you’d like to get a more precise estimate for your own credit card, you can follow the steps below.
How to Calculate the Payoff Date with Minimum Payments
- Go to WalletHub’s credit card minimum payment calculator.
- Input your card’s balance, interest rate, minimum payment percentage, and minimum dollar amount for payments.
- Click the blue “Calculate” button.
- Look at the results to see the time until the payoff, how much interest you’ll pay, and a graph showing the payoff progress over time.
You can also look at your monthly credit card statement to see exactly how long it will take to pay off your balance with only minimum payments. Credit card issuers are required by law to disclose this.
If you make at least your credit card’s minimum payment by the due date, you will avoid late fees and penalty APRs. However, any unpaid balance carried between months begins to accrue interest. Plus, not paying in full gets rid of the card’s grace period. So, if you plan on making only the minimum payment, make sure that you get a credit card with a low APR.
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