After the Fed

Independent household explainer. Not the Federal Reserve, not a lender, not advice.

Calculator

Credit-card payoff

Use the APR on your statement, not a national average. Most cards that revolve are variable: when the Fed moves the funds rate, prime usually moves, and the card APR follows on the next cycle or the one after.

Time to pay off

  • Interest paid
  • Total paid

Month-by-month compounding at APR/12. Ignores new charges, late fees, and penalty APRs. If the payment is at or under the monthly interest, the balance never falls. Not advice to revolve a balance.

How a Fed move hits credit cards