PakFinanceGuidesWhy this tool matters
Card interest compounds against you. A balance can linger for years if payments barely cover the interest.
How it works
Each month interest is added at the APR divided by 12, then your payment comes off. The number of months is: n = -ln(1 - balance x r / payment) / ln(1 + r). If your payment is not larger than monthly interest, the balance never falls, and the tool warns you.
Example
A $5,000 balance at 22% APR with $200 paid each month takes about 34 months and costs around $1,750 in interest. Raising the payment to $300 cuts the time to roughly 20 months and the interest to about $1,020.
Ways to clear it faster
Pay more than the minimum, stop adding new spending, and consider a balance transfer or lower-rate consolidation loan if the fees make sense. Target the highest APR first.
Remember
Do not rely on minimum payments, which are designed to keep you in debt for years.
Frequently asked questions
What is a good payment?
As much as you can afford above the interest. Even a small increase saves a lot.
Does the calculator add new purchases?
No. It assumes you stop using the card.
Is a balance transfer worth it?
Sometimes, if the fee is small and you clear the balance before the offer ends.