The answer depends on three numbers: your balance, your interest rate, and how much you pay each month. Change any one of those and the timeline shifts significantly.
The payoff formula
The number of months to pay off a debt is: -log(1 - (r × B) / P) / log(1 + r), where r is the monthly interest rate, B is the balance, and P is the monthly payment. This looks complex but the key insight is simple: you need your payment to cover at least the monthly interest, or the balance never shrinks.
Minimum payments: why they keep you in debt so long
A $6,000 balance at 20% APR with minimum payments (~$120/month) will take approximately 10 years to clear and cost $6,500 in interest. Pay $300/month instead and you're done in 26 months with under $1,600 in interest. The difference is $4,900 — just from paying $180 more per month.
Debt payoff strategies compared
- Avalanche method: Target the highest-APR debt first. Mathematically optimal — minimises total interest paid.
- Snowball method: Target the smallest balance first. Builds momentum and motivation; costs slightly more in interest.
- Consolidation loan: Roll multiple high-rate debts into a single lower-rate personal loan with a fixed end date.
What a $200/month increase can do
On a $10,000 debt at 18% APR: minimum payments take roughly 17 years and $12,000 in interest. Adding $200/month cuts the timeline to under 4 years and total interest to around $3,000. That $200/month saves $9,000.
Frequently Asked Questions
What is the minimum I need to pay each month to actually reduce my balance?
Your monthly payment must exceed the monthly interest charge. At 20% APR on a $6,000 balance, monthly interest is about $100. Any payment above $100 reduces the principal — but barely. Paying only a little above the minimum will take years to make meaningful progress. Aim for at least 2–3× the minimum payment.
Is the debt avalanche really better than the snowball method?
Mathematically, yes — the avalanche method (highest APR first) minimises total interest paid. However, the snowball method (smallest balance first) delivers faster psychological wins, which helps some people stay motivated and consistent. Both work; the best method is the one you will actually stick to long-term.
Can consolidating into a personal loan genuinely help?
It can — if you qualify for a materially lower interest rate. Moving $10,000 from 22% credit card APR to a 10% personal loan cuts your interest cost roughly in half and gives you a fixed payoff date. The key risk: if you don't close the cards, many people re-accumulate the same debt on top of the new loan, making things worse.
Find your payoff date
Use our Credit Card Interest Calculator to model your exact debt, rate, and payment and see a month-by-month payoff projection.
Related tools
- Personal Loan Calculator — model a consolidation
- Debt-to-Income Calculator