Credit Card Payoff Calculator

Escape the minimum payment trap and become debt-free faster. See how much you can save with a fixed payment strategy.

Your Credit Card Details

£
Your total credit card balance
%
UK average: 23-25%
%
Typically 2% of balance
£
Typically £25 (whichever is higher)
£
Enter a fixed amount to compare with minimum payments
Understanding the Minimum Payment Trap
What is the Minimum Payment Trap?

The minimum payment trap is one of the most expensive financial mistakes millions of UK consumers make. Credit card companies typically require you to pay just 2% of your balance or £25 (whichever is higher) each month.

This sounds manageable, but it's designed to keep you in debt for decades. Here's why:

  • Decreasing payments: As your balance shrinks, so does your minimum payment. This means you make less and less progress each month.
  • Interest accumulation: At 23% APR, interest charges consume most of your payment, leaving very little to reduce the actual debt.
  • Shocking timeline: A £5,000 balance can take over 20 years to pay off with minimums, costing you more in interest than the original debt.
The Solution: Fixed Payments

By paying a fixed amount each month (instead of the decreasing minimum), you can:

  • Reduce payoff time from decades to months or a few years
  • Save thousands of pounds in interest charges
  • Build momentum as more of each payment goes toward principal
  • Become debt-free and regain financial freedom
FCA Warning: UK credit card statements must now show how long it will take to pay off the balance with minimum payments. This calculator helps you see the real impact and make better decisions.
Quick Example

£5,000 balance at 23% APR

With minimum payments:

  • Time to pay off: ~23 years
  • Total interest: ~£5,900
  • Total paid: ~£10,900

With £200/month fixed:

  • Time to pay off: ~31 months
  • Total interest: ~£1,100
  • Savings: £4,800 + 20 years!
Debt Payoff Strategies
Avalanche Method

Pay off debts with the highest APR first (most cost-effective). If you have multiple cards, focus extra payments on the highest interest rate while paying minimums on others.

Snowball Method

Pay off smallest balance first (psychological momentum). Clearing individual debts provides motivation to continue, even if it costs slightly more in interest.

Avoid the Minimum Payment Trap

NEVER pay only the minimum. Even £25-£50 extra per month makes a massive difference. The minimum payment is designed to maximize bank profits, not help you become debt-free.

Tips to Pay Off Faster
  • Pay more than the minimum: Even £50 extra makes a huge difference
  • Make weekly payments: Reduces daily interest accumulation
  • Avoid new charges: Stop using the card while paying it off
  • 0% balance transfer: Move debt to 0% card (typically 3% fee, 12-28 months interest-free)
  • Negotiate lower APR: Call your card provider and ask for a rate reduction
  • Use windfalls: Tax refunds, bonuses, or gifts toward the balance
  • Debt consolidation loan: Personal loan at 8-12% APR can save money vs 23% card rate
Free UK Debt Help

If you're struggling with credit card debt, free help is available:

  • StepChange: Free debt charity (0800 138 1111)
  • Citizens Advice: Free financial guidance
  • National Debtline: 0808 808 4000
  • PayPlan: Free debt management plans
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Disclaimer

Illustrative purposes only, not financial advice. Actual payoff may vary with fees, late payments, or additional charges. Consider speaking with StepChange or Citizens Advice for free debt advice. Last updated: January 2026.