Credit Card Payoff Calculator
Calculate how long to pay off credit card debt at minimum vs fixed payments with total interest comparison
UK average is 19 to 22%. Find yours on your statement.
Typically 2 to 3% of the balance, minimum of £25
How Long Does It Take to Pay Off a Credit Card?
On a £5,000 balance at 24.9% APR paying only the 2% minimum (or £25, whichever is higher), you would take roughly 26 years to clear the debt and pay around £8,200 in interest on top. Adding £50 a month above the minimum cuts that to under 8 years and saves around £4,500 in interest. Adding £150 above the minimum clears the balance in just over 3 years and saves around £6,000.
The minimum-payment trap exists because UK credit card minimums are typically 1% of the balance plus the month's interest, or £25, whichever is higher. As your balance shrinks, so does the minimum, which is why minimum-only repayment stretches into decades. Fixed payments (paying the same pound figure every month regardless of the minimum) is the single biggest behavioural change you can make on a credit card, because it forces the principal down rather than letting interest erode every payment.
Where the UK Average Credit Card APR Sits in 2026
Bank of England data puts the average UK credit card APR at around 23% to 26% for standard cards in early 2026, with store cards higher (29% to 35%) and rewards or premium cards often higher still (24% to 29%). With the BoE base rate currently around 4%, that is a margin of roughly 20 percentage points between the cost of money to the bank and what you are charged, which is why credit card debt is almost always more expensive than any other debt you might also be carrying.
Promotional 0% purchase or balance-transfer cards are the obvious release valve. A 24-month 0% balance transfer with a 3% transfer fee on £5,000 of debt costs £150 upfront and saves roughly £2,200 in interest over the period versus a standard card, provided you actually clear the balance inside the 24 months. Miss the deadline and the card flips to a standard rate (often 23% or higher), which wipes out most of the saving. The [debt payoff calculator](/debt-payoff-calculator) lets you stress-test what happens if you only clear part of the balance before the promo ends.
Should You Save or Pay the Card Off First?
If you have any credit card balance accruing interest at 20%+, paying it down beats almost every savings or investment option available to a UK consumer. Even the best easy-access savings account in 2026 pays around 4.5% (taxed at your marginal rate, leaving 3.6% net for a basic-rate taxpayer). Paying down a 24% APR card returns 24% tax-free in effective interest avoided. The maths is not close. The exception is an emergency fund of one month's essential spending; without that, an unexpected boiler bill goes back onto the card and you start over. Build the £1,500 to £2,000 buffer first, then attack the card with everything else.
Frequently Asked Questions
How much should I pay above the minimum?
As much as you can afford while keeping any other essential debt (mortgage, rent, council tax) covered. As a benchmark, paying double the minimum on a £5,000 balance at 24.9% APR roughly halves the payoff time and cuts total interest by around 60%. Even £25 a month above the minimum makes a meaningful difference, especially on smaller balances under £2,000.
What's a good APR for a credit card in the UK?
Anything below 20% is competitive in 2026. The headline 'representative APR' on advertising is what 51% of accepted applicants get, so your offered rate may be higher than the headline. Sub-15% rates are typically reserved for premium or excellent-credit cards. If your current card is above 25%, it is worth checking eligibility for a lower-rate card via a soft-search service before applying, because hard searches affect your file.
Is a balance transfer worth it?
Almost always, if you have a clear plan to repay during the 0% period. A 24-month 0% transfer with a 3% fee on £4,000 costs £120 upfront and saves roughly £1,400 in interest versus paying it on a 22% APR card. Without a repayment plan, the saving disappears the moment the promo ends and the rate jumps. Eligibility depends on your credit file; balance transfers often require a 'good' or 'excellent' rating to access the longest 0% periods.
Will paying off my card improve my credit score?
Paying down balances reduces your credit utilisation ratio (the percentage of available credit you are using), which is one of the largest factors in UK credit scoring. Dropping from 80% utilisation to 30% can lift your score significantly within one or two reporting cycles. Closing the card after paying it off can slightly hurt your score by reducing total available credit and shortening account age, so leaving the cleared card open is usually the better move.