How it is calculated
Card interest is high and charged monthly on the remaining balance (APR ÷ 12). Months to clear balance B with payment M:
If the payment is below one month’s interest (B × r), the debt never ends. The payment needed to clear it in n months is the standard instalment formula.
Worked example
A 20,000 balance at 24% APR (2% a month) paying 1,000 a month: cleared in about 26 months with about 5,800 interest. Paying only 500 takes around 82 months and over 20,000 in interest.
Frequently asked questions
Is the minimum payment enough?
It keeps the account in good standing but stretches the debt for years and multiplies interest.
Best strategy for several cards?
Pay the highest-rate card first (avalanche) to save most, or the smallest balance first (snowball) for motivation.
Is a balance transfer worth it?
It can be, if the new rate is clearly lower after the transfer fee.