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Pay a little more, save a lot
Last reviewed: September 2009
Increasing the amount you pay each month on a credit-card balance—even by a small amount—significantly shortens the time it takes to pay it off. The table below shows how many months it would take to pay off a $5,000 card balance at different interest rates, depending on your monthly payment.
| Interest rate | Percentage of original balance paid each month | ||||
|---|---|---|---|---|---|
| 2.5% | 3% | 5% | 7% | 10% | |
| 11.9% | 52 mo. | 41 mo. | 23 mo. | 16 mo. | 11 mo. |
| 15.9 | 58 | 45 | 24 | 16 | 11 |
| 19.9 | 67 | 49 | 25 | 17 | 12 |
| 23.9 | 81 | 56 | 26 | 17 | 12 |
This article appeared in Consumer Reports Money Adviser.
Posted: September 2009—Consumer Reports Money Adviser issue: October 2009
