Credit Card Payoff Calculator

A credit card payoff calculator shows how long it takes to clear a balance under different payment strategies, plus the total interest you will pay. UK credit card APRs typically sit between 21% and 29% in 2025 — well above personal loan rates — making credit card debt one of the most expensive forms of consumer borrowing apart from payday loans. The minimum payment trap is the single biggest danger: pay only the minimum (usually 1-3% of balance plus interest) and a £2,000 balance at 25% APR can take 15-20 years to clear, with total interest paid exceeding the original balance. FCA rules introduced in 2018 require card issuers to step in if you are in "persistent debt" — paying more in interest, fees and charges than you have repaid towards principal over an 18-month period. The lender must offer to put you on a fixed payment plan that clears the debt within 3-4 years. This is not a punishment; it is the system working as designed to stop you paying minimums forever. If your statement says you are in persistent debt, take the offer or accelerate payments yourself. The calculator models three scenarios: minimum payment only (worst case), a fixed monthly payment you choose, and the impact of a 0% balance transfer card. UK 2025 balance transfer cards typically offer 0% interest for 24-32 months in exchange for a 2-3% transfer fee. Moving a £5,000 balance from 25% APR to a 30-month 0% deal with a 3% fee saves around £2,500 in interest in exchange for a £150 fee — break-even after just 2 months and pure saving thereafter. The catch is that you must clear the balance before the 0% deal ends, otherwise the rate reverts to standard purchase APR. Other tactics: switch from minimum payment to fixed monthly amount (locks payment level, prevents the minimum from shrinking as balance falls), use the avalanche method across multiple cards (see Debt Payoff Calculator), or refinance into a lower-rate personal loan (5-15% APR) if your credit profile allows. The calculator does not handle cashback or section 75 protections, store cards with hidden APRs above 30%, foreign currency cards, business credit cards, or BNPL (Buy Now Pay Later) products like Klarna which have separate FCA rules. For multi-card payoff use the Debt Payoff Calculator.