1. What is the Ramsey Credit Card Payoff Method?

The Dave Ramsey debt snowball method is a strategy for paying off debts from smallest to largest, regardless of interest rate. This calculator estimates how long it will take to pay off a credit card by applying extra payments.

2. How Does the Calculator Work?

The calculator uses the simple payoff formula:

Where:

• \( Balance \) — Current credit card balance (USD)
• \( Extra\ Payment \) — Additional monthly payment beyond minimum (USD)

Explanation: This assumes you stop using the card and make consistent extra payments each month.

3. Importance of Debt Payoff Calculation

Details: Knowing your payoff timeline helps with financial planning and motivation. The Ramsey method emphasizes psychological wins by paying off smaller debts first.

4. Using the Calculator

Tips: Enter your current credit card balance and the extra amount you can pay each month (beyond the minimum payment). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include interest charges?
A: This is a simplified estimate that doesn't account for interest. Actual payoff time may be longer due to interest.

Q2: Should I pay minimum payments while using this?
A: Yes, this calculator estimates the time if you pay minimum + extra each month.

Q3: How accurate is this estimate?
A: It's a best-case scenario assuming no additional charges and consistent payments.

Q4: What's the difference between snowball and avalanche?
A: Snowball pays smallest debts first (Ramsey method), avalanche pays highest interest first.

Q5: Should I close cards after paying them off?
A: Ramsey recommends closing credit cards to avoid future debt, though this may affect credit scores.