Why minimum payments take so long
A minimum payment is often calculated to cover interest plus a small slice of the balance. On a 20,000 balance at 20 percent, interest alone is roughly 333 in the first month. A 500 payment reduces the balance by only 167.
Avalanche: cheapest in money
List debts by interest rate, highest first. Pay minimums on everything, and send every extra amount to the top of the list. Mathematically this always costs the least in total interest.
Snowball: cheapest in willpower
List debts by balance, smallest first. Clearing an entire debt early produces visible progress and frees its payment for the next one. It costs slightly more interest, and it is the better choice if motivation is the binding constraint.
The extra payment effect
On a 30,000 balance at 18 percent, paying 1,000 a month clears it in roughly 43 months with around 12,700 in interest. Raising the payment to 1,400 clears it in about 27 months with roughly 7,300 in interest — the same debt, materially cheaper.
Protect the plan
- Keep a small emergency buffer so a surprise does not go back on the card.
- Remove stored card details from shopping accounts you use out of habit.
- Recalculate every few months rather than every week.
- When one debt clears, roll its payment into the next instead of absorbing it.
If a debt is genuinely unaffordable — the minimums exceed what you can pay — speak to the credit provider or a registered debt counsellor early. Options are far wider before an account goes into default.