Credit Card Repayment Calculator ☆ Stoor

The minimum payment is designed to keep you there

The calculator above shows how long a balance takes to clear. The figure most people have never seen is what happens paying only the minimum — because minimums are calculated as a small percentage of the balance, so they fall as the balance falls, stretching the debt out for years.

Run your balance twice: once at a minimum-style payment, once at a fixed amount slightly higher. The difference in total interest and time is usually startling, and it is entirely within your control.

The rule that clears card debt fastest: pay a fixed amount every month and never let it drop as the balance drops. If you can pay R2,000 this month, keep paying R2,000 next month.

What a card may legally charge you

Credit cards, store cards and overdrafts are credit facilities under the National Credit Act, and the interest cap is:

Repo + 14 percentage points = 21.00% at the current 7.00% repo rate.

South African banks price right up against this — several major cards sit exactly on 21%.

Two figures you will see quoted that are wrong

• 23.90% is a legacy rate. Agreements predating 6 May 2016 can still carry rates above today's ceiling, because the 2016 caps were not applied retrospectively — so an old card can lawfully exceed 21%, but a new one cannot;
• 24.85% / 22.65% and similar come from the repealed pre-2016 formula (repo × 2.2 + a margin). Several South African explainer sites still compute it and publish the answer as today's cap. It has not been law since 2016.

Check your own agreement — that is the rate that governs you, and if it predates May 2016 it is worth asking whether a newer product would be cheaper.

The fees are capped too

• Monthly service fee: R69;
• Initiation fee: R165 + 10% above R1,000, capped at R1,207.50;
• Credit life: R4.50 per R1,000 of cover, per month.

Note also that cash advances are usually charged differently and more expensively than purchases — frequently with interest from day one and no interest-free period. Check your agreement before treating a card as a source of cash.

Clearing it, in the right order

1. Stop adding to the balance while you clear it — paying down a card you are still spending on is why people feel they are getting nowhere;
2. Attack the most expensive debt first. List every debt with its rate and total repayable; the debt payoff planner sequences it;
3. Consider whether consolidation genuinely helps. A personal loan is capped at 28.00% (repo + 21pp) — higher than the 21% card cap. Consolidating card debt into an unsecured personal loan can therefore make it more expensive, even when the instalment looks smaller. Compare on total repayable, always — see the personal loan calculator;
4. Ask your bank for a lower rate if your record has improved. It is a free phone call and it sometimes works;
5. Check your credit record — you are entitled to it free once a year, and errors change what you are offered.

Then stop it coming back

Most cleared balances return because nothing changed underneath. Card debt usually starts with an unexpected cost there was no buffer for, so the follow-through is an emergency fund — even a small one blocks the shocks that restart the cycle. Project it in the savings calculator.

Frequently asked questions

What rate should I enter?

The rate on your statement or agreement. If your card predates May 2016 it may lawfully exceed today's 21% cap.

Is 21% the maximum on any card?

On agreements entered into after 6 May 2016, yes — repo + 14pp. Older agreements can carry legacy rates above it.

Should I consolidate my cards into a personal loan?

Only if the total repayable is genuinely lower. Unsecured personal loans are capped at 28%, above the 21% card cap, so consolidation frequently costs more despite a smaller instalment.

Does paying it off help my credit score?

A settled account and consistent payment history both help. Get written confirmation of settlement, and check the record afterwards to confirm it was updated.

Are cash advances treated the same as purchases?

Usually not — they are typically more expensive, often with interest from day one. Check your agreement.

NCA caps are per the Limitations on Fees and Interest Rates Regulations (in force 6 May 2016) applied to the current 7.00% repo rate; agreements predating that date may carry legacy rates. Card terms vary by issuer — confirm yours from your agreement. General information, not financial advice.