How long will your credit card take to clear?
Say you stop using the card and pay the same amount every month. See how long it takes, what it costs, and how much of each payment only covers interest. The numbers below are an example: replace them with your own.
The working
- Time to clear it1 year, 10 months
- Interest and VAT in total$11,858.78
- What you pay in total$31,858.78
This payment doesn't even cover the interest, so the debt grows every month.
This is below the minimum payment for this balance, which is at least 1.5% of what you owe plus the month's interest and VAT: $1,226.70
- Interest and VAT
- $926.70
- Your debt
- $573.30
Your card against the market
Your card's CAT is below this average.
Banxico's average is an effective interest rate, and a CAT also includes fees, so use this as a guide, not an exact match.
Method: the CAT converted to a monthly rate, plus 16% VAT on the interest, with no new purchases or late fees.
Where the numbers come from
- Effective rate on credit cards, by type of client (table CF840) Banco de México (Banxico). January-February 2026: 51.34% for clients who carry a balance, excluding promotions; 36.29% including them.
- Circular 13/2011: rules for the minimum payment on credit cards Banco de México (Banxico). Covers non-bank issuers; banks follow Circular 34/2010, which sets the same formula.
This is an estimate for comparing options, not a quote. Check the figures on your contract before deciding.