How long to repay £7,500 on a credit card at 29.9% APR

How long to repay £7,500 at 29.9% APR

Interest is added to your balance every month, so a small payment barely touches the debt. Every extra pound above the minimum goes straight to reducing what you owe. The monthly rate used here is APR ÷ 12, a close approximation of how most cards charge.

What an extra £25 a month does

Paying £335 instead of £310 a month clears the balance in 34 months instead of 38 and cuts the interest from £4,132 to £3,609, a saving of £523.

What the minimum payment really costs

If you paid a typical minimum (interest plus about 1% of the balance, starting at £261.88), the balance would take far longer to clear. As a rough guide with a fixed £262 payment it would take about 4 years and 3 months and cost £5,805 in interest.

Ways to repay faster

• Pay more than the minimum, and set a fixed monthly amount by direct debit.
• Consider a 0% balance transfer card if you can clear the balance during the offer period. Check the transfer fee.
• Use the avalanche method (highest APR first) when you have several debts.
• Contact your card provider if you are struggling: they must treat customers in financial difficulty fairly.
• Free help: MoneyHelper, Citizens Advice, StepChange and PayPlan.

Check your statement

Your monthly statement shows the APR, the minimum payment and how long it would take to clear the balance if you only pay the minimum. Compare it with the figures on this page.