🎯 How Calculations Work

Daily Interest: Credit cards charge daily interest calculated as (Balance × APR / 365). This means interest compounds daily, not monthly.

Payment Split: Your payment is applied first to interest charges, then remaining amount reduces the principal.

💡 How to Use Results

• Payoff Timeline: How long until debt-free at current payment level
• Total Interest: Total wasted on interest (not building wealth like investments)
• Total Paid: Original balance + all interest = what you actually pay
• Schedule: See how balance decreases and interest portion shrinks over time

⚡ The Power of Paying More

• $5,000 at 18.99% APR:
  $200/month = 34 months + $2,716 interest
  $300/month = 19 months + $1,379 interest (saves $1,337!)
  $500/month = 11 months + $671 interest (saves $2,045!)
• Even small increases ($50 more/month) slash years off and save thousands

🔄 Smart Strategies

• Pay More Than Minimum: Minimum payment is designed to maximize interest—always pay more if possible
• Balance Transfer: Move to 0% APR card if available to save interest
• Debt Payoff Plans: Avalanche (highest interest first) or Snowball (smallest balance first) methods
• Negotiate APR: Call issuer if you have good history; many will lower your rate
• Avoid New Charges: Stop charging while paying off to avoid extending payoff timeline