Credit Card Payoff
You carry a balance. The card company charges 22-29% APR. Here's the fastest exit — and the actual cost of staying on minimums.
2026 US average is around 22-26% for general-purpose cards.
What you could pay if you cut everything non-essential for a few months.
Paying just the minimum will cost you
$8,400
in EXTRA interest. Total paid: $13,400 on the $5K balance.
| Strategy | Monthly | Time | Total paid | Interest |
|---|---|---|---|---|
If you have multiple cards — the avalanche method
Pay the minimum on every card. Throw EVERY extra dollar at the card with the highest APR. When that card is paid off, roll its full payment into the next-highest card. Mathematically optimal. (The "snowball" method — smallest balance first — is psychologically easier but mathematically worse if rates differ much.)
The post-payoff rule
Once balances are at zero: never carry a balance again, ever. Cards are fine for points and convenience IF you pay in full every cycle. The day you carry a balance is the day the math flips and the bank wins.