Minimum Payment Calculator

Frequently decades. Because the minimum is a percentage of the balance, it falls as the balance falls, so each payment puts proportionally less against the principal. The total interest often exceeds the original balance.

It is designed to be affordable rather than to clear the debt. Paying it keeps the account in good standing and barely touches the principal, which is exactly what maximises the interest collected.

Fix the payment at today's minimum and never let it fall. It costs nothing extra this month and typically cuts years off the payoff, because every subsequent payment puts more against the principal.

Yes. If the minimum is below the monthly interest, the balance grows regardless of payment. That is the situation a balance transfer or a debt charity exists to break, and it needs intervention rather than persistence.

Highest rate saves the most money; smallest balance clears an account soonest and is easier to sustain. The mathematically optimal method loses to the one you actually finish.

It can, if the transfer fee is less than the interest avoided and you clear the balance within the promotional period. It fails when the promotional rate expires with the balance still outstanding.

Commonly a percentage of the balance — often 1 to 3% — plus interest and fees, subject to a cash floor. Because it tracks the balance, it falls every month as the balance does.

Not directly, if it is paid on time. Indirectly it does, because the balance stays high and keeps utilisation elevated, which is a scoring factor.

Paying minimums on everything and directing all spare money at the highest interest rate first. It costs the least in total interest, and it can feel slow if the highest-rate debt is also the largest.

Clearing the smallest balance first regardless of rate. It costs slightly more in interest and produces faster visible progress, and studies of actual behaviour suggest people are more likely to finish.

Above a small emergency buffer, usually yes — card interest almost always exceeds savings interest by a wide margin. Keeping the buffer matters, because otherwise the next surprise goes back on the card.

When the minimums are no longer affordable, when a balance grows despite payments, or when new credit is being used to service existing debt. Free advice services exist in most countries and involve no cost or judgement.