Why card debt is different
A credit card charges interest on the balance every month, and the minimum payment is deliberately small — often just the interest plus a sliver of the balance. Pay only that and the debt barely moves while the interest keeps arriving. Anything you add on top comes straight off the balance, so it shortens every month that follows.
Formula
Monthly interest = balance × APR ÷ 12 ÷ 100- Each month:
new balance = balance + interest − payment, repeated until it reaches zero
Worked example
A balance of 120,000 at 27% APR with 6,000 paid each month takes 2 years and 3 months to clear and costs 41,218 in interest. Raise the payment to 7,200 and it clears five months sooner, with 9,122 less interest.
How to use the payoff calculator
- Enter the balance shown on your latest statement.
- Enter the APR. It is printed on the statement; cash advances usually carry a higher one.
- Enter what you can pay each month, then try a slightly larger figure to see the months fall away.
Clearing it faster
- Stop adding new purchases to a card you are trying to clear. Interest-free days usually vanish once a balance is carried.
- With several cards, put every spare taka against the highest rate first and the minimum on the rest. That costs the least overall.
- If the rate is very high, a personal loan or a balance transfer at a lower rate can cut the cost — but only if you stop using the card afterwards.
Frequently asked questions
How long will it take to pay off my credit card?
It depends on the balance, the rate and what you pay. Enter the three above and the calculator steps through the months the way the bank does, including the interest added each month.
Why does paying the minimum take so long?
The minimum is mostly interest, so very little comes off the balance. On a high rate it can take years and cost more in interest than the original purchases.
Is it better to pay more each month or make one lump payment?
Both help, and sooner is better — interest is charged on what remains, so money that arrives earlier saves more. A lump sum now beats the same amount spread over a year.