UK Debt Payoff Calculator: Find Your Debt-Free Date
This debt payoff calculator for the UK shows how long it will take to clear your credit cards, overdrafts and loans, and how much interest you will pay, using the avalanche or snowball method. The average credit card now charges 21.55% a year, so paying £150 a month on £5,000 takes 49 months and £2,294.45 in interest. Add each debt and your monthly budget to get your own debt-free date.
Updated . Built and checked by My Easy Calculator against Bank of England August 2026 interest rates and FCA consumer credit rules. How we check figures
| Average rates paid, August 2026 | |
| Credit cards | 21.55% |
| Overdrafts | 20.27% |
| New personal loans | 9.96% |
| Credit card rules (FCA) | |
| Minimum payment floor | Interest + 1% |
| Persistent debt check | 18 months |
| If you cannot pay | |
| Breathing Space | 60 days |
| Debt Relief Order limit | £50,000 |
Plan your debt payoffCredit cards, store cards, overdrafts and loans, up to 8 debts
- UK APR method
- Checked
Lump sum, start month, consolidation and target dateOptional: test a one-off payment, a consolidation loan or a debt-free deadline
Compare a consolidation loan
Debt-free by a deadline
Your plan Avalanche
Compare repayment plans
| Plan | Time | Interest |
|---|
See your balance fall
See every month
| Month | Paid | Interest | Left to pay |
|---|
Figures update as you change any input. Struggling to make minimum payments? Get free debt advice.
Four debts totalling £13,100 (a £4,200 credit card at 29.9%, a £900 store card at 19.9%, a £1,500 overdraft at 39.9% and a £6,500 loan at 9.9%) with £413 of payments plus £150 extra a month are cleared in 29 months with the avalanche method, paying £2,831.11 in interest. Minimum payments alone would take 18 years 5 months and £11,394.43.
UK debt interest rates at a glance
UK borrowers paid an average of 21.55% a year on interest-charging credit cards, 20.27% on overdrafts and 9.96% on new personal loans in August 2026, according to the Bank of England. Credit card rates have stayed above 21% all year, so card balances are usually the most expensive debt to carry.
| Type of debt | January 2026 | August 2026 |
|---|---|---|
| Interest-charging credit cards | 21.75% | 21.55% |
| Interest-charging overdrafts | 22.03% | 20.27% |
| New personal loans | 9.03% | 9.96% |
These are averages across all borrowers. Your own APR is on your statement or credit agreement and can be much higher: arranged overdrafts at many banks charge around 40%, and store cards often charge close to 30%.
How long does it take to pay off a credit card?
A £5,000 credit card balance at the average 21.55% APR takes 49 months to clear at £150 a month, with £2,294.45 of interest. At £300 a month it takes 20 months and £888.69. Paying only the minimum (interest plus 1% of the balance) stretches it to 226 months, nearly 19 years, and £7,189.98 of interest.
How the debt payoff calculation works
A debt payoff calculation adds a month of interest to each balance, takes off your payments, and repeats until every balance reaches zero. The number of months is your payoff time, and the interest added along the way is the cost of the debt.
Monthly interest from your APR
A UK APR is an effective annual rate under the FCA's Consumer Credit sourcebook (CONC App 1), which already includes monthly compounding. The matching monthly rate is (1 + APR)1/12 minus 1, not APR divided by 12. At 24.9% APR that is 1.870% a month, not 2.075%.
| APR | Correct monthly rate | APR divided by 12 | Payoff time, correct | Payoff time, APR / 12 |
|---|---|---|---|---|
| 9.9% | 0.790% | 0.825% | 3 years 3 months | 3 years 4 months |
| 21.55% | 1.640% | 1.796% | 4 years 1 month | 4 years 4 months |
| 24.9% | 1.870% | 2.075% | 4 years 5 months | 4 years 10 months |
| 29.9% | 2.204% | 2.492% | 5 years 1 month | 6 years 1 month |
| 39.9% | 2.837% | 3.325% | 8 years 9 months | Never |
Dividing by 12 overstates interest every month. On £5,000 at 24.9% with £150 a month, the shortcut shows 58 months and £3,593.58 of interest; the correct method gives 53 months and £2,905.75. At 39.9%, £150 a month looks like it can never clear £5,000 with the shortcut, because £166.25 of interest appears to be added in month 1. The real figure is £141.87, and the debt clears in 105 months.
How each payment is applied
Every month the calculator pays the amount you entered on each debt first. Your extra amount then goes to one target debt: the highest APR (avalanche) or the smallest balance (snowball). When a debt is cleared, its payment moves to the next target, so your total monthly payment stays the same and pays debts off faster and faster.
The final payment
The last payment on each debt is only what is left, so it is usually smaller than the others. Any money left over in that month goes straight to the next debt rather than being wasted.
Why your lender's figures may differ
Card and loan providers calculate interest daily and post it on your statement date, and some charge different rates on purchases, balance transfers and cash withdrawals. That can move the result by a few pounds or a month. Fees, missed payments and new spending are not included.
How to use the debt payoff calculator
The debt payoff calculator needs the balance, APR and monthly payment for each debt, plus any extra you can pay. It supports up to 8 debts of any type and works the same way for a single credit card.
- Enter your balance from your latest statement or online banking for each debt, and give it a name you recognise.
- Add the APR. It is on your statement or credit agreement. For a card with several rates, use the rate on most of the balance.
- Set your monthly payment for each debt: your card's minimum payment, your fixed loan repayment, or what you pay into your overdraft.
- Add an extra monthly amount if you can afford one. Even £50 a month changes the debt-free date.
- Pick avalanche or snowball. The calculator runs both anyway and shows the difference.
- Read the result: debt-free date, total interest, total repaid, the order debts clear, and a comparison with minimum payments only. Open the options to test a lump sum, a consolidation loan or a deadline.
How long will it take to pay off your debt?
How long it takes to pay off debt depends on the balance, the APR and how much you pay each month. Doubling the payment on a £5,000 card at 21.55% from £150 to £300 cuts the time from 49 months to 20 and saves £1,405.76 in interest.
| Monthly payment | Time to clear | Total interest | Total repaid |
|---|---|---|---|
| £100 | 8 years 10 months | £5,537.41 | £10,537.41 |
| £125 | 5 years 6 months | £3,198.66 | £8,198.66 |
| £150 | 4 years 1 month | £2,294.45 | £7,294.45 |
| £200 | 2 years 9 months | £1,487.00 | £6,487.00 |
| £250 | 2 years 1 month | £1,109.09 | £6,109.09 |
| £300 | 1 year 8 months | £888.69 | £5,888.69 |
| £400 | 1 year 3 months | £641.32 | £5,641.32 |
| £500 | 1 year | £505.75 | £5,505.75 |
| Minimum only (interest + 1%) | 18 years 10 months | £7,189.98 | £12,189.98 |
Use the table to estimate any balance: £10,000 at the same rate and twice the payment takes the same time with twice the interest. At 21.55% a month of interest on £5,000 is about £82, so any payment much closer to that barely reduces the balance.
Debt snowball vs debt avalanche
The debt avalanche pays extra money to the debt with the highest APR first, which always costs the least interest. The debt snowball pays the smallest balance first, which clears a whole debt sooner and can make it easier to keep going. Both pay every minimum every month.
| Debt | Balance | APR | Avalanche: cleared | Avalanche: interest | Snowball: cleared | Snowball: interest |
|---|---|---|---|---|---|---|
| Credit card | £4,200.00 | 29.9% | Month 23 | £1,439.87 | Month 25 | £1,662.74 |
| Store card | £900.00 | 19.9% | Month 25 | £264.94 | Month 6 | £44.21 |
| Overdraft | £1,500.00 | 39.9% | Month 9 | £211.13 | Month 13 | £398.91 |
| Personal loan | £6,500.00 | 9.9% | Month 29 | £915.17 | Month 29 | £921.24 |
| Total | £13,100.00 | Month 29 | £2,831.11 | Month 29 | £3,027.10 |
The debt avalanche method
With avalanche, the £1,500 overdraft at 39.9% is cleared in month 9, then the 29.9% credit card in month 23. The total interest is £2,831.11. Because no money is ever spent on a lower rate while a higher rate remains, no order can cost less.
The debt snowball method
With snowball, the £900 store card is gone in month 6 and the overdraft in month 13. You see progress three months earlier, but the expensive overdraft and credit card stay open longer, so total interest rises to £3,027.10, £195.99 more than avalanche.
Which method is better for you?
Avalanche is better on cost when your APRs differ a lot. Snowball can be better if small wins keep you paying, and the gap is often small: here both methods finish in month 29. If your smallest debt also has the highest rate, both methods are identical.
Credit card minimum payments and persistent debt
Most UK credit card minimum payments are the month's interest plus 1% of the balance, often with a £5 to £25 floor, because FCA rule CONC 6.7.5 requires a minimum that covers at least interest, fees and 1% of the balance. As the balance falls the minimum falls too, which is why paying only the minimum can take decades.
| Balance | First minimum | Minimum only: time | Minimum only: interest | Frozen payment: time | Frozen payment: interest |
|---|---|---|---|---|---|
| £1,000 | £26.40 | 5 years 6 months | £631.59 | 5 years | £575.28 |
| £2,500 | £65.99 | 13 years 1 month | £3,091.08 | 5 years | £1,438.60 |
| £5,000 | £131.98 | 18 years 10 months | £7,189.98 | 5 years | £2,877.19 |
| £10,000 | £263.96 | 24 years 7 months | £15,388.13 | 5 years | £5,754.36 |
| £20,000 | £527.92 | 30 years 4 months | £31,783.79 | 5 years | £11,508.72 |
Freeze your payment at today's minimum. If you keep paying the first month's minimum instead of letting it shrink, a card at 21.55% is cleared in 60 months whatever the balance. On £5,000 that saves 166 months and £4,312.79 of interest.
What persistent debt means
The FCA's persistent debt rules (CONC 6.7.27 onwards) apply when you have paid more in interest, fees and charges than off your balance over 18 months. A £3,000 card at 24.9% on interest plus 1% does exactly that: after 18 months you have paid £928.42 of interest but only £496.45 off the balance.
What your card provider must do at 18, 27 and 36 months
At 18 months your provider must tell you, and explain how paying more would cut the cost and time. It writes again at 27 months if nothing has changed. At 36 months it must offer a way to repay the balance in a reasonable period, usually 3 to 4 years, and if you cannot afford that it must treat you with forbearance, which can include reducing, waiving or cancelling interest. It can suspend the card if you do not respond.
What affects your debt-free date?
Your debt-free date moves when your APR, payments or balance change. These are the changes that most often push it back.
APR changes and promotional rates ending
When a 0% balance transfer or purchase period ends, the balance moves to the standard rate, often above 25%. Variable rates can also rise with notice. Rerun the calculator with the new APR the month it changes.
Fees and missed payments
A missed payment usually brings a late fee of up to £12, can end a promotional rate, and is recorded on your credit file. Overdraft and cash withdrawal fees add to the balance in the same way as interest.
New spending
Any new spending on a card you are paying down adds to the balance the calculator is clearing. If you need the card for day-to-day spending, clear that amount in full each month and use the calculator only for the old balance.
Payment timing
Paying on or just after your statement date, rather than near the due date, reduces daily interest slightly. Splitting the same total into weekly payments has a similar small effect.
Should you consolidate your debts?
A debt consolidation loan saves money only if its total interest is lower than your current plan's, which depends on the loan APR and term, not just the monthly payment. Moving the £13,100 example to a loan at the 9.96% average costs £329.32 a month over 4 years and £2,707.07 of interest, £124.04 less than the avalanche plan, but you would pay for 48 months instead of 29.
| Option | Monthly payment | Time | Total interest |
|---|---|---|---|
| Avalanche plan, current debts | £563.00 | 2 years 5 months | £2,831.11 |
| Loan at 9.96% over 3 years | £419.83 | 3 years | £2,013.87 |
| Loan at 9.96% over 4 years | £329.32 | 4 years | £2,707.07 |
| Loan at 9.96% over 5 years | £275.34 | 5 years | £3,419.79 |
| Loan at 19.9% over 4 years | £386.78 | 4 years | £5,465.27 |
A balance transfer card can be cheaper still for card debt you can clear within the 0% period, but there is usually a one-off transfer fee and the rate jumps when the offer ends. Close or stop using the old cards, or the debt can build up again. Use the consolidation option in the calculator to compare a loan with your own plan.
Do not move unsecured debts such as credit cards into a loan secured on your home without advice. Missing payments on a secured loan can put your home at risk, while unsecured debts cannot.
Paying off a loan early
The Consumer Credit Act 1974 (s.94) lets you repay most regulated loans early, in full or in part. For fixed-rate loans taken out since , the lender can charge compensation only on early repayments over £8,000 in a 12-month period, capped at 1% of the amount repaid (0.5% if less than a year is left) under s.95A.
Worked examples
Each example comes from the same calculation the calculator uses.
£4,200 card at 29.9%, £200 a month
Monthly rate 2.204%, so month 1 adds £92.56 of interest and £107.44 comes off the balance. The card clears in 29 months with £1,501.71 of interest.
£13,100 across four debts
£413 of payments plus £150 extra, highest APR first: the overdraft clears in month 9, the credit card in month 23, everything by month 29. Interest £2,831.11.
Same debts, smallest first
Snowball clears the store card in month 6 instead of month 25, but keeps the 39.9% overdraft until month 13. Interest £3,027.10 against £2,831.11.
Adding £1,000 of savings now
Paid in month 1 to the 39.9% overdraft, a £1,000 lump sum brings the debt-free date forward 3 months to month 26 and cuts interest to £2,142.95.
Debt-free by a deadline
To clear the four debts in 24 months with avalanche, pay £641.34 a month: £228.34 more than the £413 of payments. Interest falls to £2,291.84.
£5,000 card on interest + 1%
The first minimum is £131.98 and shrinks every month. It takes 18 years 10 months and £7,189.98 of interest. Keeping £131.98 a month clears it in 5 years for £2,877.19.
When a calculator is not enough
If you are falling behind on bills, cannot afford your minimum payments, or are borrowing to repay other debts, free and impartial debt advice will help more than any repayment plan. Advice from charities such as StepChange, National Debtline and Citizens Advice, or through MoneyHelper, costs nothing and is confidential. You never need to pay a company to deal with your debts.
Pay priority debts first
Priority debts are the ones where not paying has the most serious consequences, so they come before credit cards and loans in any plan. They include rent or mortgage arrears, council tax, energy bills, court fines, child maintenance, TV Licence, income tax or VAT, and hire purchase on a car you need. Missing them can lead to eviction, enforcement agents, disconnection or court action.
Breathing Space
In England and Wales, a debt adviser can apply for Breathing Space, which pauses most creditor action and freezes interest and charges on qualifying debts for up to 60 days while you get advice. A mental health crisis Breathing Space lasts as long as your crisis treatment plus 30 days. It is not a payment holiday: you still need to pay what you can.
Debt solutions if you cannot repay
A debt management plan (DMP) is an informal agreement to pay one affordable amount, shared between your creditors; free providers do not charge, and creditors may freeze interest but do not have to. A Debt Relief Order (DRO) can write off qualifying debts of up to £50,000 in England and Wales if you have little spare income (£75 a month or less) and few assets, and there has been no fee since . An Individual Voluntary Arrangement (IVA) and bankruptcy are formal options that affect your credit file for at least 6 years.
Scotland and Northern Ireland
Scotland has its own solutions, including the Debt Arrangement Scheme, trust deeds and the Minimal Asset Process, and Northern Ireland has its own Debt Relief Order rules. The same free advice services can tell you which applies to you.
How close is this estimate?
The debt payoff calculator models each month using your APRs converted to effective monthly rates and rounds interest to the penny, so for fixed-rate debts with no fees it lands within a few pounds of a lender's own figures. Daily interest, statement dates and promotional rates cause the small differences.
It does not model 0% promotional periods, separate rates for cash or balance transfers, fees, rate changes, new borrowing or your lender recalculating a loan after overpayments. The "card minimums only" comparison assumes each card's minimum is interest plus 1% of the balance with a £25 floor; your card may use a different formula, so check your statement.
Common debt repayment mistakes
The most expensive debt repayment mistake is letting a card payment fall with the balance. These are the errors that cost people most.
- Paying only the shrinking minimum. On £5,000 at 21.55% it costs £4,312.79 more than freezing the first payment.
- Overpaying a cheap loan before an expensive card. Extra money on a 9.9% loan saves far less than the same money on a 29.9% card.
- Consolidating over a longer term. A lower monthly payment can still mean more interest; compare the totals.
- Keeping spending on the cards you are clearing. New spending moves your debt-free date every month.
- Leaving priority bills behind. Council tax, rent and energy come before credit cards.
- Paying for debt help. Free advice offers the same solutions without fees.
Frequently asked questions
A £5,000 credit card balance at 21.55% APR needs £462.40 a month to clear in 12 months, or £253.69 a month over 24 months. For your own debts, open the calculator options and choose a debt-free target; it shows the monthly amount needed and how much more that is than your current payments.
At the average credit card rate of 21.55%, £10,000 takes 49 months to clear at £300 a month, with £4,588.89 of interest. At a 9.96% personal loan rate the same £300 clears it much faster, so the APR matters as much as the balance.
Usually, yes. Lower balances compared with your credit limits and a record of on-time payments both help, and the improvement shows as lenders update your credit file each month. Closing old cards once they are cleared can lower your available credit, so some people keep one paid-off card open and unused.
Keep a small emergency fund first so a surprise bill does not go on a card, then put spare money towards debt. Credit card interest of around 21.55% is far higher than the interest most savings accounts pay, so each pound used to clear a card usually saves more than it would earn.
Yes, you can ask. FCA rules require lenders to treat customers in financial difficulty with forbearance, which can include reducing or freezing interest, accepting lower payments or pausing collection. A free debt adviser can contact lenders for you and may set up a debt management plan or Breathing Space.
Yes. Enter one debt, its APR and your monthly payment to see how long it will take to pay off and the interest, then try different payments. With one debt the avalanche and snowball results are the same.
Usually not. A Plan 1, 2, 4 or 5 student loan is repaid as a share of your income and written off after a set period, so it does not behave like other debt; use our student loan repayment calculator instead. For a mortgage, our mortgage overpayment calculator shows the effect of paying more.
Yes. Lenders usually record reduced payments or defaults on your credit file while you are on a debt management plan, and a default stays for 6 years from the date it was recorded. The plan itself can still be the right choice if you cannot keep up with full payments, so get free advice before deciding.
You may be charged a late fee, lose any promotional rate, and have the missed payment recorded on your credit file. Contact the lender before the due date if you can see a problem coming; lenders must consider your circumstances and may agree a lower payment for a while.
Paying the debt with the higher APR first saves the most interest, which is usually the credit card. Keep making every contracted payment on the loan, put any extra towards the card, and check your loan agreement before overpaying it, because fixed-rate loans can carry an early repayment charge on overpayments above £8,000 a year.
Not on its own. If you are behind on rent, mortgage, council tax or energy, those priority bills come first, and free debt advice from StepChange, National Debtline, Citizens Advice or MoneyHelper can help you make a plan that protects your home and essential services.
Sources
- Money and Credit, August 2026 and January 2026, Bank of England. Checked .
- Consumer Credit sourcebook, CONC 6.7: minimum repayments and persistent debt (6.7.5, 6.7.27 to 6.7.40), Financial Conduct Authority. Checked .
- CONC App 1: total charge for credit and APR, Financial Conduct Authority. Checked .
- Options for paying off your debts, GOV.UK. Checked .
- Breathing Space (Debt Respite Scheme), HM Treasury. Checked .
- The Insolvency Proceedings (Monetary Limits) (Amendment) Order 2024 (SI 2024/626), legislation.gov.uk. Checked .
- Consumer Credit Act 1974, sections 94 and 95A, legislation.gov.uk. Checked .
- Dealing with debt, MoneyHelper. Checked .
- Legislation: Consumer Credit Act 1974; Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020; Insolvency Act 1986, Schedule 4ZA.
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Disclaimer
Calculation methodology sourced from official government publications. See our Editorial Policy for how we build and maintain our calculators.
Results are estimates for planning, not financial or debt advice. Your lenders' statements and settlement figures are the official amounts. If you are struggling to pay, contact a free debt advice service before taking out new credit.