Credit Card Repayment Calculator

Enter your credit card balance and see how long it will take to become debt-free. Discover how adding just $50 to your monthly payment saves thousands in interest.

Card Details

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%

Your Repayment

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Increase this slightly to see the massive difference it makes!

Time to Pay Off

Assuming no new purchases

0 Months
Years equivalent 0.0 Years
Total Interest Paid $0
Total Cost (Principal + Interest) $0

Understanding Credit Card Debt in Australia

Credit cards are the most expensive common form of consumer debt in Australia. While home loans charge around 6% and personal loans around 10%, standard rewards credit cards routinely charge interest rates of 19.99% to 22.99% p.a.

The Minimum Payment Trap

By law, Australian banks must show you a 'Minimum Repayment Warning' on your monthly statement. They will show you exactly how long it will take to pay off your balance if you only pay the minimum (usually 2% to 3% of the balance). Because the minimum payment barely covers the interest charged that month, paying only the minimum can keep you in debt for over a decade.

The Power of Extra Repayments

Because credit card interest is calculated daily on your outstanding balance, making payments early or adding just $50 to your regular monthly payment can drastically reduce the amount of time you are in debt. Every dollar above the interest charge goes directly to wiping out the principal.

Balance Transfers

If you are struggling with a high interest rate, consider a Balance Transfer. Many Australian banks offer '0% for 12 or 24 months' to new customers. You move your debt to the new bank, immediately stopping the interest charges. However, you must be disciplined enough to pay off the debt before the 0% period ends, and you must not use the new card for any new purchases.

Related Calculators

Credit Card Calculator Snowball vs Avalanche Debt Consolidation

Get free financial counselling advice from the National Debt Helpline.

10 Frequently Asked Questions

1. What is the Debt Snowball method?
You pay off your debts from smallest balance to largest balance, regardless of interest rate, to gain psychological momentum.
2. What is the Debt Avalanche method?
You pay off debts from highest interest rate to lowest interest rate. This is mathematically the fastest way to save money.
3. How does credit card interest work?
Interest is calculated daily on your outstanding balance and charged monthly. Rates typically range from 10% to 24% p.a.
4. What happens if I only pay the minimum?
Paying only the 2-3% minimum means it will take years or decades to clear the balance, costing thousands in interest.
5. Will a balance transfer help?
A 0% balance transfer can give you breathing room to pay down principal without interest, but ensure you pay it off before the promotional period ends.
6. Can debt collectors seize my property?
In Australia, unsecured debt collectors cannot seize your property without a court order, but they can list defaults on your credit file.
7. What is financial hardship?
If you are struggling to make payments due to job loss or illness, you can legally request a 'hardship variation' from your bank to pause payments.
8. Does cancelling a credit card improve my score?
Cancelling unused cards lowers your total credit limit, which improves your borrowing power for a home loan.
9. What is a default?
If a payment is more than 60 days overdue, it can be recorded as a default on your credit file and stay there for 5 years.
10. Where can I get free help?
The National Debt Helpline (1800 007 007) offers free, confidential financial counselling to all Australians.