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Will I Ever Pay Off My Debt?

Enter your total debt, interest rate, and monthly payment to see exactly when you'll be debt free. Compare what happens when you pay more and find the fastest path to $0.

Last verified: 1 July 2025

Will I ever pay off my credit card?

Yes — but only if you pay more than the minimum. On a $10,000 credit card at 20% interest with only 2% minimum payments, payoff takes ~30 years and costs over $19,000 in interest — nearly double the original debt. The fastest route out is the avalanche method (extra payments to the highest-rate debt first) — mathematically the cheapest — though the snowball method (smallest balance first) has higher completion rates in research because of the psychological wins. Source: ASIC MoneySmart; National Debt Helpline 1800 007 007.

Worked examples. $5,000 credit card at 20% with $150/month → ~4 years, ~$2,100 interest. Bump to $300/month → under 2 years, ~$900 interest saved. $10,000 at 18% with $300/month → 44 months; add $100/month → 30 months and ~$1,400 less interest. A 0% balance-transfer card for 12-24 months can save another ~$1,000 on $5,000 debt — but watch the 1-3% transfer fee and the 20-25% revert rate. Rule of thumb: keep total non-mortgage debt repayments under 20% of gross income.
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Credit cards are typically 18-22%. Personal loans 6-15%.

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Your Debt-Free Date

December 2030

That's 4 years 8 months from now

Total Interest

$7,210.43

Total Paid

$22,210.43

Interest as % of Debt

48%

Where Your Money Goes

Principal
Interest
$15,000.00 principal$7,210.43 interest

What If You Paid More?

See how much faster you could be debt-free with extra payments.

Current: $400.00/mo

4 years 8 months — $7,210.43 interest

Debt free

December 2030

+$50.00/mo = $450.00/mo

3 years 11 months — saves $1,259.62 interest

9 months faster

March 2030

+$100.00/mo = $500.00/mo

3 years 5 months — saves $2,132.96 interest

1 year 3 months faster

September 2029

+$200.00/mo = $600.00/mo

2 years 8 months — saves $3,268.54 interest

2 years faster

December 2028

Payoff Timeline Comparison

$400.00/mo
4 years 8 months
$450.00/mo
3 years 11 months
$500.00/mo
3 years 5 months
$600.00/mo
2 years 8 months

Debt Payoff Strategies

Balance Transfer

Move credit card debt to a 0% balance transfer card for 12-24 months. Saves all interest during the promotional period.

Best for: Credit card debt you can clear in 1-2 years

Debt Consolidation

Combine multiple debts into a single personal loan at a lower rate (typically 8-12% vs 18-22% for cards).

Best for: Multiple high-interest debts

Avalanche Method

Pay minimums on all debts except the highest interest rate. Direct all extra money there. Saves the most money.

Best for: Maximising interest savings

Snowball Method

Pay minimums on all debts except the smallest balance. Clear it, then roll that payment into the next. Quick wins for motivation.

Best for: Staying motivated

Full Payment Schedule (56 months)
MonthPaymentInterestPrincipalBalance
1$400.00$225.00$175.00$14,825.00
2$400.00$222.38$177.63$14,647.38
3$400.00$219.71$180.29$14,467.09
4$400.00$217.01$182.99$14,284.09
5$400.00$214.26$185.74$14,098.35
6$400.00$211.48$188.52$13,909.83
7$400.00$208.65$191.35$13,718.48
8$400.00$205.78$194.22$13,524.25
9$400.00$202.86$197.14$13,327.12
10$400.00$199.91$200.09$13,127.02
11$400.00$196.91$203.09$12,923.93
12$400.00$193.86$206.14$12,717.79
18$400.00$174.60$225.40$11,414.36
24$400.00$153.53$246.47$9,989.13
30$400.00$130.50$269.50$8,430.73
36$400.00$105.32$294.68$6,726.71
42$400.00$77.78$322.22$4,863.45
48$400.00$47.68$352.32$2,826.09
54$400.00$14.75$385.25$598.35
55$400.00$8.98$391.02$207.32
56$210.43$3.11$207.32$0.00

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Frequently Asked Questions

How long will it take to pay off my credit card?
It depends on your balance, interest rate, and monthly payment. For example, a $5,000 credit card at 20% interest with $150/month minimum payments takes about 4 years and costs $2,100 in interest. Paying $300/month cuts that to under 2 years and saves $1,200 in interest. Many Australians only pay the minimum (2-3% of balance), which can take 15-20+ years to clear. Use our calculator above to see your exact timeline based on your specific debt.
How to get out of debt in Australia?
Follow these steps: (1) List all debts with balances, interest rates, and minimum payments. (2) Choose a strategy — avalanche method (highest interest first) saves the most money, snowball method (smallest balance first) gives quick wins for motivation. (3) Look into balance transfer cards (0% for 12-24 months) to stop interest accumulating. (4) Consider debt consolidation if you have multiple high-interest debts. (5) Cut expenses temporarily and direct all extra money to debt. (6) If drowning, contact the National Debt Helpline (1800 007 007) for free financial counselling.
Should I use the snowball or avalanche method?
The avalanche method (paying highest interest rate first) saves the most money mathematically. The snowball method (paying smallest balance first) gives psychological wins that keep you motivated. Research shows people who use the snowball method are more likely to stick with their plan and become debt-free. Our recommendation: use avalanche if your debts have very different interest rates (e.g., 20% credit card vs 5% personal loan), and snowball if rates are similar or you need motivation.
Will I ever pay off my credit card paying minimums?
Eventually, yes — but it will take far longer and cost far more than you think. A $10,000 credit card at 20% interest with 2% minimum payments takes about 30 years to pay off, and you'll pay over $19,000 in interest — nearly double the original debt. This is why credit card companies love minimum payments. Even adding $50/month above the minimum dramatically reduces both the time and total interest paid.
What happens if I pay an extra $100 per month on my debt?
Extra payments have a dramatic effect because they go straight to reducing your principal, which reduces future interest charges. On a $10,000 debt at 18% interest with $300/month payments, adding $100/month (total $400) cuts the payoff time from 44 months to 30 months and saves approximately $1,400 in interest. The higher your interest rate, the bigger the impact of extra payments. Our calculator shows you exactly how extra payments change your payoff date.
Should I consolidate my debts?
Debt consolidation makes sense when: (1) You can get a lower interest rate than your current average, (2) You have multiple debts and struggle to manage payments, (3) You won't rack up new debt on the cleared cards. A typical consolidation loan at 8-12% can save thousands versus credit cards at 18-22%. However, watch out for: longer loan terms that increase total interest, establishment fees, and the temptation to spend on cleared credit cards. Use our Debt Consolidation Calculator for a detailed comparison.
Is a balance transfer card worth it?
Balance transfer cards offering 0% interest for 12-24 months can be excellent for paying off credit card debt — if you can clear the balance within the promotional period. On $5,000 of debt, moving from 20% to 0% for 12 months saves about $1,000 in interest. Key risks: (1) If you don't pay it off in time, the revert rate is typically 20-25%, (2) Balance transfer fees of 1-3% apply, (3) New purchases may not be interest-free. The strategy works best when you commit to paying the full balance before the promo period ends.
How much of my income should go to debt repayment?
Financial experts recommend keeping total debt repayments (excluding mortgage) below 20% of your gross income. If your debt-to-income ratio exceeds 20%, you may be in financial stress. When aggressively paying off debt, the 50/30/20 rule suggests: 50% needs, 30% wants, 20% savings/debt repayment. Some people temporarily adopt a more aggressive split like 50/20/30 (putting 30% toward debt) until high-interest debts are cleared. The faster you pay off high-interest debt, the sooner that money can go toward savings.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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