AmortMapWhat a given loan amount actually costs per month, and over its life.

How to pay off $3,500 in credit card debt at 23% APR

$3,500 at 23% APR
$135a month clears it in three years
paying the $102 minimum instead takes 16.4 years and $5,618 in interest
Years to clear the balance16.4 yrminimum only$102/mo at first3 yr$135/mo fixedsame card, same rate2 yr$183/mo fixed1 yr$329/mo fixedThe minimum shrinks as the balance does — that is why it takes 16.4 years
Minimum payment, first month1% of the balance plus that month's interest, floored at $25$102
Years on minimums only$5,618 of interest — 161% of what was borrowed16.4 years
Clear in 12 months$451 interest$329/mo
Clear in 24 months$899 interest$183/mo
Clear in 36 months$1,377 interest$135/mo
Clear in 60 months$2,420 interest$99/mo
Interest accruing right now$805 a year if the balance never moves$67.08 a month

Notes

  • The minimum payment is designed to last. At $102 it clears this balance in 16.4 years and costs $5,618 in interest — 161% of the amount borrowed. The reason is that the minimum falls as the balance falls, so the payment shrinks just as fast as the debt does.
  • A fixed payment is the whole fix. Paying $135 every month regardless of what the statement asks clears it in three years for $1,377. Nothing else about the account has to change.
  • A 0% balance transfer is worth about $899 here, less the transfer fee of 3–5% ($105–$175). It only helps if the balance is actually cleared inside the promotional window; the rate afterwards is usually higher than the one you left.
  • Interest is charged daily on the average balance, not once at month end. Paying mid-cycle reduces that average and therefore the charge, which is why two people paying the same total in the same month can be charged different amounts.

The short answer

$3,500 at 23% APR takes 16.4 years to clear on minimum payments, and costs $5,618 in interest on the way.

Paying a fixed $135 a month instead clears it in three years for $1,377.

Fixed payments, every option

Cleared in Payment Interest
12 months $329 —
24 months $183 —
36 months $135 $1,377
60 months $99 —
minimums only $102 at first $5,618

Why the minimum takes 16.4 years

The usual minimum is 1% of the balance plus that month's interest, floored at $25. Because it is a percentage of the balance, it falls as fast as the debt does.

Every payment shrinks the next payment. The schedule flattens out and stays flat. That is not a side effect — a balance that clears quickly earns nothing.

The fix is not a bigger payment forever. It is a fixed payment: pay $135 every month regardless of what the statement asks, and nothing else about the account has to change.

Interest accrues daily, not monthly

At 23% this balance is accruing about $67.08 a month, and it is calculated on the average daily balance.

Two consequences most statements do not spell out. Paying mid-cycle rather than on the due date lowers that average and therefore the charge. And a balance carried even once usually loses the grace period, so new purchases start accruing immediately rather than at the end of the next cycle.

Balance transfers are worth about $1,377 here

A 0% promotional transfer saves the interest for the length of the promotion, minus a transfer fee of 3–5% — $105–$175 on this balance.

It only helps if the balance is actually cleared inside the window. The go-to rate afterwards is usually higher than the one being left, and the promotion does not restart.

Order of attack when there are several cards

Highest rate first costs the least in total. Smallest balance first clears accounts soonest and is easier to keep going.

The gap between the two is usually small in dollars and large in whether the plan survives to month twelve. Pick the one you will still be doing next year.

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