Debt Management

Debt Calculator

How long will it take to pay off your credit card debts? Our debt calculator will give you a comparison between paying your debts on your own versus paying your debts using our debt management program.

Enter your credit card balance and interest rate. Then enter the monthly credit card payment. Click “Calculate” to get the results. You can enter up to 5 credit cards into the debt calculator by clicking "Add Another Card".

Why should you pay more than the minimum credit card payment?

Every credit card bill has a minimum required payment. However, the majority of the minimum payment goes toward the interest that was accrued for carrying a balance. When you pay more than the minimum credit card payment, the lender applies the overage to the principal (the total amount the consumer has borrowed, not counting interest added on as a result of carrying a balance from one month to the next). Consumers who make only the minimum payment will also be in debt far longer than consumers who pay more.

For example, a consumer has $10,000 in credit card debt on an account that charges 19 percent interest and requires a minimum monthly payment of $250. If he or she were to make only that $250 payment, it would take them 63 months - more than five years - to pay off their debts. The total interest paid over that five years would be $5,966.70. But if they were to make $275 in payments (just $25 more a month), the interest tacked onto their total balance would add up to about $5,010.15, and take just 54 months – just four and half years - to pay off.

What’s the advantage of using a debt management program?

Debt management program reduces your interest rates, lowering the amount of your credit card payment that goes towards paying interest. Even if your overall payment is reduced, you’ll still have more money going towards the principal because of lower interest rates. As more the principal is paid off and credit card balances are zeroed out, the payment doesn’t change so the longer you’re on the debt management program, the more of your payment will go towards the principal until the entire credit card debt is paid off.

For example, the same consumer decides to join a debt management program instead of making a higher monthly payment. The debt management program lowers the interest rate to 9 percent and reduces the monthly payment to $225. While the consumer will still take 54 months to pay off their debt, they will only be paying $2,209.51 in interest (that’s approximately $2,800 savings in interest). Because they’re paying $50 less per month, they’ll end up saving $2,700 in credit card payments. Between the lower fees and reduced monthly payment, this consumer would save approximately $5,500 on the debt management program.

How much can Consolidated Credit save you on credit card debt?

This debt calculator only gives a rough estimate on what you can save on a debt management program. Every financial situation is different, and only a certified credit counselor can advise you if you qualify for a debt management program. To find out how much you could save with Consolidated Credit, call 1-800-320-9929 to speak with a certified credit counselor.