How credit card interest is calculated
Card issuers charge interest monthly at roughly your APR divided by 12. On a $5,000 balance at 22% APR that's about $92 of interest per month — so a $100 payment barely moves the balance. Every dollar above the interest goes straight to principal, which is why small increases in your payment cut months off the payoff.
Fastest ways to pay off credit card debt
Pay more than the minimum, stop adding new charges, and target the highest-APR card first (the avalanche method) to minimise interest. A 0% balance transfer can help if you can clear the balance before the promo ends.
This calculator assumes a fixed payment and no new purchases or fees.