How to Read Your Credit Card Statement
Opening your credit card statement can be a drag, but ignore it and you could be paying hundreds in interest. Find out how to understand the fine print!
Ramsey
Credit Card Payoff Calculator
Sick and tired of credit card debt? Find out exactly how long it will take you to pay off your credit cards—and how to do it faster.
*Not sure how to use the credit card calculator?
Pay Off Your Credit Card Debt Faster
It all starts with a budget. The EveryDollar budgeting app helps you make a plan for your money every month—so you can confidently cover your expenses and free up more money to throw at your credit card debt!
How to Use the Credit Card Payoff Calculator
- Enter the current balance, interest rate and minimum payment for each credit card.
- Then, click Get Your Debt-Free Date to see when you’ll pay off all your credit cards. We’re not going to lie—it can be a little depressing to see that date, especially if you’ve got a long way to go. But don’t stop there!
- If you’ve got multiple credit cards, you’ll also see how much faster you can pay them all off with the debt snowball method. By tackling your credit cards from smallest to largest balance, you’ll make more progress (plus save a ton of money in interest).
- Lastly, you can add an extra monthly payment to boost your payoff even more. Once you see how much faster you can pay off your credit cards, you’ll be ready to attack your debt head on!
Credit Card Terms
Credit card terminology can be confusing and overly complicated (lucky for the credit card companies—but not for you). Let’s break down what some of the common credit card terms actually mean.
Balance
This is the amount you owe on your credit card. You can find your current balance by reading your most recent credit card statement or logging in to your credit card account online.
Interest Rate
This is the amount you owe on your credit card. You can find your current balance by reading your most recent credit card statement or logging in to your credit card account online.
Minimum Payment
This is the lowest amount you are required to pay each month to stay in good standing with the credit card company. But keep in mind, if you only pay the minimum payment and don’t pay off your entire balance in full, you’ll get charged interest.
How to Pay Off Credit Card Debt
Don’t let credit card debt get you down! Here’s how to pay off your credit card debt fast:
- Use the debt snowball method.
By tackling your credit cards from smallest to largest balance (instead of worrying about the interest rates), you’ll pay off your debt faster. The debt snowball works because it gives you the momentum and motivation to keep going.
- Get on a budget.
It’s hard to pay off your debt if you have no clue where your money is going. That’s where a budget comes in—specifically a zero-based budget. Making a plan for every single dollar helps you cover the basics and boost your credit card payment.
- Find more money.
Once you’ve made your budget, it’s time to free up more money by lowering your expenses and increasing your income. Every extra dollar gets you one step closer to being credit card debt-free!
Credit Card FAQ
Learn More About Credit Cards
Ramsey
How Many Credit Cards Should You Have?
Even a single credit card can do some serious damage to your finances. But carrying multiple credit cards is just asking for trouble. Find out what happens when you open too many credit card accounts.
Ramsey
How Do Credit Cards Work?
Credit card debt is at an all-time high! Learn the truth about how credit cards work (and the hidden costs) so you can avoid the trap.
Jade Warshaw
Say Goodbye to Credit Card Debt for Good
Financial Peace University (FPU) is the money class that’s helped millions of people get rid of their debt—and stay out of debt.
