Find out exactly when you'll be debt-free and how much you'll save by paying more than the minimum.
Credit card debt at 19.99% is one of the most expensive forms of debt in Canada. Paying only the minimum keeps you in debt for decades and costs you thousands in interest. This calculator shows you exactly how long payoff will take — and what happens when you increase your payment.
Credit card minimum payments are typically calculated as 2–3% of the balance or $10, whichever is greater. On an $8,000 balance at 19.99%, your minimum payment starts around $200 per month. The problem: most of that goes to interest, not principal.
| Payment Strategy | Monthly Payment | Time to Pay Off | Total Interest |
|---|---|---|---|
| Minimum only (2%) | ~$160 (declining) | 27+ years | $8,000+ |
| Fixed $200/month | $200 | ~8 years | ~$10,800 |
| Fixed $400/month | $400 | ~2.5 years | ~$2,400 |
| Fixed $600/month | $600 | ~1.3 years | ~$1,000 |
If you have multiple credit cards, you need a strategy for which to pay off first:
Pay minimums on all cards. Put all extra money toward the card with the highest interest rate first. Once it's paid off, roll that payment to the next highest rate. This minimizes total interest paid.
Pay minimums on all cards. Attack the smallest balance first. Each payoff creates momentum and a psychological win. Research shows many people actually stick with the snowball longer and succeed more often, despite paying slightly more interest.
One reason Canadians accumulate credit card debt is the ease of overspending on a revolving credit account. KOHO works differently: it's a prepaid Visa that only lets you spend money you already have. You can't go into debt with KOHO — making it a useful tool during your debt payoff phase while you cut up or freeze your credit cards.
Spend only what you have. Budget by category. Save automatically. Get a $100 cash bonus when you sign up with code 45ET55JSYA.
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