Credit cards. Ugggg. Just writing out the plasticky words gives me a serious case of “the sads.” There’s no doubt that when used wisely, credit cards can be a fabulous tool for spending and tracking your money. But when you only pay the minimum balance every month there’s a whole mess of growing credit card debt and interest charges to deal with, which can give anyone a case of “the sads.”

Credit card companies love it when you pay only the minimum balance since they earn a lot of interest while you spend years trying to pay off your credit card debt. Many credit card bills outline this minimum balance in bold just to highlight how little you need to pay back to stay in good standing.

But I want you to beat the minimum balance game. So I created the Credit Card Calculator to show you how many years it takes and how much interest you pay by sticking with minimum balance payments. So go grab your credit card statement, find your annual interest rate, and spare yourself from getting “the sads” while time is still on your side.

How to use the Credit Card Calculator:

Step 1: Open the Credit Card Calculator.

Step 2: Credit Card Balance: Enter the total amount you owe to the credit card issuer.

Step 3: Annual Interest Rate (APR): Enter the annual interest rate charged by your credit card issuer on your balance.

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Step 4: Minimum Monthly Amount, Minimum Monthly Percentage: These are the minimum amounts you must pay each month on your credit card. The minimum payment is the greater of these two amounts:

  • A fixed amount (for example, $15), or
  • a percentage (for example, 4%) of the balance you owe.

Check your credit card agreement to see what formula your credit card issuer uses to calculate the minimum monthly payment you are required to pay on your credit card.

Step 5: Click Calculate. The Credit Card Payment Report displays below. Find out how many years it really takes to pay off a credit card when only the minimum balance is paid. You may just be shocked by how much total interest you’re paying. Hugs.

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Use the Credit Card Calculator Payment Report to better understand the true impact of only paying the minimum balance on your credit cards. I’d love to see you beat those credit card companies by increasing your payments by just a bit and thus reducing your credit card debt faster!

More Credit Card Calculator Help:

Got a credit card balance story to share? Have you beaten your credit card debt by increasing your payments? Ever used a credit card calculator to reduce your debt faster?