Paying Off Credit Cards Fast: Where Every Extra Dollar Goes
You have $300 extra a month and four cards. The order you apply them to changes the payoff date by years. Here's the ordering math.
The interest bleed
A $6,000 card balance at 24% APR charges $1,440 a year in interest—$120 a month to own the debt. Minimum payments on four cards mostly service that bleed; the principal barely moves.
Every extra dollar to the highest-APR card stops the most expensive bleed by $0.24/year, guaranteed, tax-free. No investment argument beats a guaranteed 24% return.
Finding the extra dollars
The audit finds $100/month in zombie charges (see the expense audit). Windfalls,tax refunds, bonuses,go 80% to debt, 20% to sanity. Selling unused stuff accelerates month one dramatically.
During payoff, cards emerge from the wallet. Points accrue on new spending at 24% APR—paying the bank for the privilege of rounding errors.
Common questions
Is a 0% balance transfer worth it?
If the transfer fee (3%) is less than months of interest saved AND the card stays at zero after—yes. Read the deferred-interest terms twice.
Pay off cards or save simultaneously?
One month emergency fund first. Then, all-in on credit cards. Without that buffer, every flat tire re-creates the debt.