How long will it take to pay off my debt?
It depends on your balance, interest rate, and monthly payment. This calculator amortizes your balance month by month. Higher interest rates and lower payments dramatically extend the timeline, sometimes to decades on minimum payments.
Why does my debt barely go down each month?
On high-interest debt, most of a small payment goes to interest rather than principal. If your payment is close to the monthly interest charge, your balance shrinks very slowly. Increasing your payment attacks the principal directly.
When should I consider a consumer proposal instead of paying it off?
If you cannot realistically clear your unsecured debt within about five years, a consumer proposal may settle it for less and stop interest from accruing. A Licensed Insolvency Trustee can compare your payoff plan to a proposal.
How much does an extra payment save?
Extra payments go straight to principal, so they cut both the timeline and the total interest. Even a modest extra amount each month can save thousands in interest and shave years off high-rate balances.