Credit Card Payoff Calculator
Calculate your debt-free date and compare payoff strategies. See how much interest you can save by paying more than the minimum.
Calculate Your Payoff Plan
Australian CC rates: 15-24%
Typically 2-3% of balance
Floor minimum payment
How much can you pay each month?
The Minimum Payment Trap
Credit card minimum payments are designed to keep you in debt. Here's why:
Payoff Strategies
Avalanche Method
Pay highest interest first. Saves the most money mathematically.
Snowball Method
Pay smallest balance first. Quick wins build momentum.
Balance Transfer Option
Consider a 0% balance transfer card to stop interest accruing. But watch for transfer fees (typically 1-3%) and pay off before the promotional period ends.
Need Help?
Free financial counselling:
National Debt Helpline
1800 007 007
Breaking Free from Credit Card Debt
Australian households carry an average of $3,200 in credit card debt. With interest rates ranging from 15% to 24% p.a., this debt can be incredibly expensive if left unchecked.
The Minimum Payment Trap
Credit card minimum payments are designed to keep you in debt. Most minimums are only 2-3% of the balance—just enough to cover interest plus a tiny amount of principal. A $10,000 balance at 20% interest would take over 30 years to pay off with minimums, costing over $20,000 in interest.
Choosing Your Payoff Strategy
Avalanche Method (Best for savings)
Pay highest interest first. Saves the most money mathematically. Choose if you're motivated by numbers and don't need quick wins.
Snowball Method (Best for motivation)
Pay smallest balance first. Quick wins build momentum. Choose if you need psychological victories to stay motivated.
Other Options to Consider
- Balance transfer: Move debt to a 0% promotional rate card (watch for transfer fees)
- Debt consolidation loan: Combine multiple debts into one lower-rate loan
- Hardship programs: Contact your bank if you're struggling—they may offer reduced rates or payment plans
- Financial counselling: Free services available through the National Debt Helpline (1800 007 007)
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