Credit card debt can feel overwhelming, but Barclays offers a handy repayment calculator to create a strategic payoff plan. I’ll walk through how to use this tool to pay off your balance faster and save on interest.
I’ve used the Barclays repayment calculator for my own credit card payoffs. While minimum payments are easy, I learned how little progress that makes on reducing your overall debt. The key is paying more than the minimum when possible.
Barclays’ calculator shows you exactly how increasing monthly payments speeds up payoff time. It also estimates interest savings compared to minimum payments.
Below I’ll cover key tips on using the repayment calculator for ideal credit card payoff
Enter Your Card Details
First, enter your current balance, interest rate, and minimum due. These are found on your statement.
For balance, enter the full amount owed. Use your APR for interest rate. And the minimum payment is listed on your statement.
Choose a Payment Method
Next pick how much you want to pay monthly
- Minimum payment
- Fixed amount
- Full balance
Paying the full balance monthly avoids interest But fixed payments work if you can’t pay in full Even an extra $25/month helps!
See Payoff Timelines
Once submitted, the calculator estimates how long it will take to pay off your credit card with that payment method.
It also shows total interest paid. This helps motivate bigger monthly payments to reduce interest fees.
Adjust and Compare Scenarios
Tweak the monthly payment amount and rerun the calculator to compare scenarios. See if you can budget more towards your credit card balance. Even a few extra dollars monthly speeds up payoff time significantly.
The key is finding a payment level you can consistently afford each month. Sticking to a set payment monthly is crucial.
Takeaways for Faster Payoff
To recap, here are some top tips for paying off credit card balances faster with Barclays’ repayment calculator:
- Pay more than the minimum when possible
- Increase monthly payments by any amount you can
- Pay weekly/bi-weekly if that suits your cash flow
- Rerun scenarios to find the fastest payoff timeline within your budget
- Make payments automatically to avoid missed payments
- Pay online for speed and payment confirmation
- Monitor your balance and interest charges monthly
Turn Debt into Motivation
The repayment calculator is a powerful tool to take control of your credit card payoff plan. I encourage you to use it to create a strategy that fits your financial situation. Turn that debt into motivation to become debt-free ASAP!
Fix your payment based on what you can afford
If you can make the minimum payment this month, try making future payments of the same amount, or even more if you can.
You won’t have to pay the minimum amount each month as long as you don’t charge more, and as your balance goes down, you’ll save time and interest.
Compare paying the minimum to a fixed amount
The example shows how much interest a £2,500 balance on a card with a 28% APR would cost and how long it would take to pay it off. 9% annual interest rate. This assumes that there is no further spend on the card.
- You would have to pay at least £78 every month, plus interest of £5,009, and it would take you 26 years and 11 months to pay off the debt.
- You would pay a fixed payment of £78, and the interest would add up to £1,763. It would take you 4 years and 7 months to pay off the debt.
- Fixed payment of £108—interest of £987—and it would take you 2 years and 9 months to pay off the debt.
Note: these results are a guide, calculated on approximate minimum payment rates which vary by provider and product. We assume that the card isn’t used for anything else, that there are no fees, and that all balances are charged the same interest rate.
Before you go ahead and fix your monthly payments, here are a few things to think about:
- You can always make extra payments whenever you can if you don’t think you can make your monthly payments right now. You can use a UK bank account, the Barclaycard app, or online service to make a payment.
- If you fix your payments and keep using your card, make sure you check your fixed amount often. You may need to raise it to make sure it still meets your needs.
- Your monthly balance might not be enough to cover your minimum payment if you set up a Direct Debit for it, but we’ll still take the minimum amount. We’ll let you know if this happens.
How to calculate credit card interest
FAQ
How long will it take to pay off $20,000 in credit card debt?
If you only make the minimum payment every month, which is usually about 1% of the balance plus interest, you can expect the following: Time to pay off: about 421 months
How long will it take me to pay off $30,000 in credit card debt?
It will take twenty-four months to pay off the $30,000 debt with $1,000 monthly payments, based on an average credit card APR of about 18%. How long it takes to pay off a debt is based on how often you make payments, how much you pay each time, and the interest rate the lender charges.
How long would it take to repay a $2000 credit card debt at a 19% interest rate by making only the minimum required payment of $25 month?
This would take 6 years and 9 months to pay off a $2,000 credit card debt with the current interest rate, assuming you only made the minimum payment of $25 a month. So, the correct answer is 6 years, 9 months.
What is a credit card payoff calculator?
A credit card payoff calculator can help you figure out when you will be able to pay off your credit card debt. This way, you can plan your payments around a set schedule for paying off your debt faster. Why should you pay off your credit card debt? Because getting out of debt is the first step to money freedom and security.
How do I pay off credit card debts each month?
There are multiple ways to approach paying off credit card debts each month. The Credit Cards Payoff Calculator uses a method known as the “Debt Avalanche method. The calculator also assumes that no more purchases are made on any of the credit cards, that the minimum payments stay the same, and that the interest rates stay the same.
How long does it take to pay off a credit card?
This Credit Card Payoff Calculator assumes that the introductory APR will last for 18 months. However, some can be as short as 6 months. Who should get one? A balance transfer credit card might be the best way to get rid of your credit card debt faster.
What is a credit card payoff strategy?
This plan to pay off credit card debt uses psychological tools like motivation and reward to help people stay on track with paying off their debt. As with both methods, the most important thing is to always make the minimum payments on time for each credit card to avoid big fees.
How do you calculate the time to pay off a credit card?
Principal = PMT – (P × r) The periodic payment less the interest payment equals the principal payment. Use these formulas to figure out the interest and principal for the first payment. This will help you figure out how long it will take to pay off your credit card. Then, subtract the principal paid from the principal balance to find the remaining balance.
Should I pay my Barclaycard balance in full?
You must pay at least the minimum monthly payment (estimated to be £ 5). Paying the balance in full each month means you pay no interest on what you’ve borrowed. If you only pay the minimum amount each month, the interest, fees, and charges on your Barclaycard will add up to more than the amount you borrow.
