Your credit card details
Card balance & rate
Compare — what if you paid more?
Debt free in
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at current repayment
Total interest
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cost of debt
Total repaid
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principal + interest
Needed for target
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monthly repayment
Payoff comparison
Current repayment plan
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With extra payment
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Interest saving with extra payment
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💡 How to get debt free faster
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How to pay off credit card debt faster
Stop using the card
The most important step — stop adding new debt while paying off old debt. Put the card away or freeze it. Even small ongoing purchases significantly extend your payoff timeline and increase total interest paid.
Pay more than the minimum
Minimum repayments on Australian credit cards are typically 2% of the balance. At 20% interest, paying only minimums on a $5,000 balance can take over 30 years to repay. Even doubling your minimum repayment dramatically reduces total interest.
Consider a balance transfer
Many Australian banks offer 0% balance transfer cards for 12-24 months. Transferring your balance can save significant interest if you pay down the debt during the promotional period. Watch for balance transfer fees (usually 1-3%).
Avalanche vs snowball
The avalanche method pays the highest interest rate card first (saves most money). The snowball method pays the smallest balance first (builds momentum). Both work — choose the one you'll stick to.
Call your bank
Many Australians don't realise they can call their bank and request a lower interest rate. This works more often than you'd expect, especially if you have a good payment history. Even a 2% reduction saves hundreds in interest.
Use windfalls wisely
Tax refunds, bonuses and unexpected income are powerful debt killers. Putting a $3,000 tax refund directly onto a $5,000 credit card balance can cut your payoff time in half and save you years of interest payments.
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Frequently asked questions
What is the average credit card interest rate in Australia?
The average credit card interest rate in Australia is approximately 19-20% per year for standard cards. Low rate cards typically charge 10-13% while rewards cards often charge 20%+. Always check the purchase rate on your specific card — it should be on your statement.
How does credit card interest work in Australia?
Credit card interest is calculated daily on your outstanding balance and charged monthly. If you pay your full balance by the due date each month, you pay no interest (the interest-free period). If you carry a balance, interest is charged on the unpaid amount from the transaction date.
What is the minimum repayment on a credit card?
Australian credit card minimum repayments are typically 2% of the closing balance or $25, whichever is greater. ASIC requires lenders to display on statements how long it would take to pay off the balance making only minimum repayments — it's often shocking and deliberately so, to encourage larger payments.
Should I do a balance transfer?
A balance transfer can be very effective if you are disciplined. The key is to stop using the original card, pay down as much of the balance as possible during the 0% promotional period, and have a plan for any remaining balance when the promotional rate ends. Watch for revert rates — they are often very high.