Credit Card Payoff Calculator - Forbes

Find the Best Balance Transfer Credit Cards Of 2021

If you’re carrying debt on your credit card, know that you’re not alone. Americans owe $790 million in credit card debt as of the second quarter of 2021, according to the New York Federal Reserve’s Q2 Household Debt and Credit Report, which is the most recent data available.

Having a plan to pay off your debt is a smart money move. You can use our calculator to see how long it will take you to pay off what you owe and how increasing or decreasing the amount you pay monthly will affect that goal.

If you’re seeking inspiration on how to find ways to pay off your debt more quickly, consider creating a debt reduction plan. Or if you’re feeling overwhelmed by the amount you owe, see Forbes Advisor’s guide to debt relief.

Find the Best Balance Transfer Credit Cards Of 2021

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Frequently Asked Questions (FAQs)

How can I consolidate my credit card debt?

Credit card debt consolidation is where you combine multiple credit card balances into one balance. This can make it easier to keep track of since there is just one monthly payment due. The most effective use of a debt consolidation strategy is to transfer your debts to a credit card with an intro 0% APR offer or a lower APR than what you’re currently paying on your balances. This can help you pay down your debt faster and with less interest.

What happens if I only make minimum payments on my credit card?

Even though minimum credit card payments may sometimes seem helpful, they’re almost always a mistake in the long run. Making minimum payments repeatedly instead of making headway towards your balance can potentially hurt both your credit score and your wallet.

As your credit card balance increase, your credit utilization will also go up—which can have a negative impact on your credit score. And, it’s expensive to carry credit card debt as the interest will keep accruing and cost you more to pay off the longer you wait.

Can I negotiate my debt with the credit card company?

Negotiating your own credit card debt could be a better choice than a less-reputable debt settlement company. Debt settlement companies may advise you to stop making your minimum credit card payments which can result in late fees, a higher penalty APR and ultimately more debt to negotiate. Many debt settlement companies are also for-profit, meaning they operate to make money off of you, not to resolve your debt.

If you don’t think working it out on your own with your credit company is right for you, choose a reputable debt settlement company, ideally either a non-profit or one that fully discloses any and all fees.

When should I seek debt relief?

If you’re feeling overwhelmed by your debt or you simply can’t find a way to make any progress on a repayment plan, that’s when it might be time to consider a debt relief program. This may involve speaking to a non-profit debt management company and having them help you create a plan that’s right for your particular circumstances.

How do I pick a repayment plan?

There’s no one right plan when it comes to debt repayment. For some, a debt consolidation plan where you consolidate several debts into just one payment per month can help with staying organized and on track. For others who can’t meet the minimum monthly payments, a debt management plan may be a better option.

With debt management, a credit counselor or a debt relief program advisor can potentially help you negotiate lower rates on your loans or even settle for a smaller amount then you owe. There are pros and cons to any debt management program so be sure to explore your options and pick what’s best for your circumstances and budget.

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