Your repayment time depends on your balance, interest rate (APR), and how much you pay monthly. This calculator estimates your debt-free date based on those inputs.
Paying more than the minimum each month and avoiding new spending helps clear your balance faster and reduces interest charges.
The minimum payment is the lowest amount you must pay each month to keep your account in good standing. While it helps avoid late fees and protects your credit rating, it does little to reduce your overall balance.
1. Minimum payment calculation: This is typically a small percentage of your outstanding balance—often between 1% and 3%—though exact figures vary by issuer.
2. Interest and fees: Your minimum payment may also include any accrued interest, late payment charges, or annual fees. These additional costs can increase the required amount.
3. Fixed minimum amount: Many card providers apply a minimum payment floor—commonly between £5 and £25. If the calculated percentage is lower than this amount, you’ll be asked to pay the fixed minimum instead.
For example, if your balance is £1,000 and the card requires 2%, your minimum payment would be £20. But if your card’s minimum floor is £25, then £25 becomes payable that month.
While making the minimum payment keeps your account in good order, it does not significantly reduce your debt. Relying on minimum payments alone can extend repayment over many years and result in paying far more interest overall.
You’ll repay your debt very slowly and pay far more in interest. Use this calculator to see how much longer it could take and how much more you’ll pay overall.
Paying more than the minimum each month is one of the most effective ways to take control of your credit card debt. It helps reduce the total interest you pay, clears your balance faster, and puts you in a stronger financial position.
Use our Switch & Overpay calculator to see how much you could save by paying more than the minimum each month.
Yes. Transferring your balance to a credit card with a lower APR means less interest is charged each month, helping you repay the balance faster with the same monthly payment.
1. Balance transfer fees: Most 0% balance transfer deals charge an upfront fee—usually around 3% to 5% of the amount moved. Over time, these fees can outweigh the interest savings.
2. Promotional period limits: Introductory 0% interest periods are temporary, often lasting between 6 and 18 months. Once they expire, your remaining balance will start accruing interest at a much higher rate.
3. Credit score impact: Each new application involves a hard credit check. Frequent applications can lower your credit score, and constantly opening and closing accounts may reduce your average account age—another scoring factor.
4. Temptation to spend more: The availability of 0% deals can create a false sense of security. Some borrowers end up spending more, assuming they can always move the balance again.
5. Risk of rejection: There’s no guarantee you’ll be approved for every balance transfer. Lenders may view frequent switching as a sign of financial stress, making future approvals more difficult.
6. Tracking complexity: Managing multiple cards and expiry dates can be difficult. Missing a deadline or forgetting a payment could result in unexpected interest charges or the loss of promotional rates.
7. Balance transfer limits: Lenders often cap how much you can transfer. If your total debt exceeds this cap, you might be left juggling multiple balances across different cards.
Rather than relying solely on switching, consider combining it with regular overpayments. A balanced strategy can help you avoid fees, reduce risk, and repay debt faster.
If your credit card APR is higher than your savings rate, it’s usually better to focus on debt repayment. It’s a guaranteed return on your money.
APR stands for Annual Percentage Rate. It’s a standardised figure that includes your interest rate and certain fees, helping you compare cards. However, it doesn’t reflect how interest is calculated daily on your actual balance, which is what affects how much you’ll pay each month.
You can avoid interest by paying your full statement balance by the due date each month. Avoid using your card for cash withdrawals, as these often incur interest immediately. Using 0% deals sensibly and avoiding just making minimum payments are also key to staying interest-free.