How to pay off credit card debt faster and save interest.

How card interest builds

Your APR is a yearly rate, but issuers usually apply it daily to your balance. The U.S. Consumer Financial Protection Bureau explains how your card company calculates the interest you owe. Because interest is added to the balance, unpaid interest can itself earn interest.

A simple example

Take a $3,000 balance at 18% APR paid at $100 a month with no new purchases. It takes about 41 months and costs roughly $1,015 in interest. At 15% APR the same payment takes about 38 months and costs roughly $783. Try your own numbers in the Credit card payoff calculator.

Ways to finish sooner

• Pay more than the minimum, even by a small amount.
• Put extra money toward the card with the highest APR first, which usually saves the most interest.
• Stop adding new purchases to the card you are paying off.
• Check whether a lower-rate option is available to you, and read all fees before you move a balance.

Find the money in your budget

Use the Monthly budget planner to see what is left after expenses, and decide how much you can put toward the card each month. If you cannot cover even the interest, contact your issuer or a nonprofit credit counselor.