How to pay off a credit card faster
- Pay more than the minimum: even $50 extra a month can cut years off the payoff time.
- Stop adding new charges to the card you're paying off.
- Ask for a lower APR: card issuers often agree, especially if you've paid on time.
- Consider a 0% balance transfer if you can clear the balance within the promotional period.
- Have several cards? Use the debt payoff calculator to compare the snowball and avalanche methods.
Example
A $5,000 balance at 22.9% APR, paid at $200 a month, takes 35 months to clear and costs about $1,860 in interest. Raising the payment to $300 a month clears it in 21 months and saves roughly $784 in interest.
