Credit Card Interest — How Much Is Your Debt Really Costing You?

Credit card debt is one of the most expensive forms of borrowing available. At 22% APR — the US average — a $10,000 credit card balance costs you approximately $183 in interest every single month. That's $2,196 per year just in interest, not repaying a cent of the original balance.

The True Cost of Credit Card Debt at 22% APR

• $5,000 balance at minimum payment (2%): 15+ years to pay off, $4,300+ in interest
• $10,000 balance at minimum payment (2%): 16+ years to pay off, $9,200+ in interest
• $20,000 balance at minimum payment (2%): 17+ years to pay off, $19,000+ in interest

This means you could end up paying nearly double the original balance in interest alone if you only make minimum payments.

How Paying More Changes Everything

On a $10,000 balance at 22% APR:

• Minimum payment (~$200): 16 years, $9,200 interest
• $300/month: 4 years 2 months, $4,900 interest (saves $4,300)
• $500/month: 2 years 2 months, $2,350 interest (saves $6,850)
• $1,000/month: 11 months, $1,050 interest (saves $8,150)

The Avalanche Method — Pay Off Debt Faster

If you have multiple credit cards, the avalanche method saves the most money. Pay the minimum on all cards, then direct any extra payment to the card with the highest interest rate first. Once that's cleared, add its minimum to the next highest rate card.

Balance Transfer Options

A 0% balance transfer card can be a powerful tool. Moving $10,000 to a 0% card for 18 months and paying $555/month clears the debt with zero interest — saving thousands. Check eligibility carefully and avoid making new purchases on the transfer card.

Use our Credit Card Interest Calculator to see exactly how long your debt will take to pay off and how much interest it will cost under different payment scenarios.