Two jobs for one payment
In our simplified model, AED 10,000 of debt at a 24% nominal annual rate incurs 2% interest in the first month: AED 200. A month-end payment of AED 500 covers that interest and reduces the balance by AED 300. The next month’s interest is calculated on the smaller AED 9,700 balance.
The same debt, paid at different speeds
With no new borrowing or fees, a fixed AED 300 monthly payment takes 56 months and costs about AED 6,644 in interest. AED 500 takes 26 months and about AED 2,899 in interest. AED 1,000 takes 12 months and about AED 1,270. The last payment is smaller when the amount due is below the chosen repayment.
When the balance does not fall
At the initial balance, a payment of AED 200 only covers the first month’s interest. Less than AED 200 lets the balance grow. The explorer flags this instead of inventing a payoff date. A payment that is only slightly above the interest can leave a very long repayment period.
A model, not a card statement
Interest here is added monthly at the annual rate divided by 12, before each payment. Many real credit cards calculate interest daily and may apply different rates, grace periods or fees. Contract terms and payment timing matter. Use the explorer to understand the mechanism; the examples are not lender quotes or payment recommendations.
Sources & further reading
Sources checked 13 November 2026. These organisations provide reference material and do not endorse this website.
