It will take 47 months to pay off $40,000 with payments of $1,200 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is. Increasing your payments to $4,800 per month, for example, would decrease your payoff timeline to 9 months.
Examples of How Long It Will Take to Pay Off $40,000 on a Credit Card
- If you pay $1,200 a month, it will take you 47 months to pay off $40,000
- If you pay $2,400 a month, it will take you 20 months to pay off $40,000
- If you pay $3,600 a month, it will take you 13 months to pay off $40,000
- If you pay $4,800 a month, it will take you 9 months to pay off $40,000
Note: All examples assume an average APR of 18%.
With credit cards and other lines of credit, you can technically take as much time as you need to pay off $40,000 , as long as you always make at least your required minimum monthly payment. You can use WalletHub’s credit card calculator to find out exactly how long it would take you to pay off $40,000 with specific interest rates and monthly payments.
This answer was first published on 12/05/23 and it was last updated on 12/13/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
It will take 47 months to pay off $40,000 with payments of $1,200 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How can I pay off $40k in debt fast? ›
To pay off $40,000 in credit card debt within 36 months, you will need to pay $1,449 per month, assuming an APR of 18%. You would incur $12,154 in interest charges during that time, but you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.
How to pay off $5000 quickly? ›
Debt avalanche: Make minimum payments on all but your credit card with the highest interest rate. Send all excess payments to that card account. Once you pay that account off, send all excess payments to your next highest rate. Repeat until all of your debts are paid off.
How to get $50,000 out of debt? ›
Tips for Paying Off $50,000 in Credit Card Debt
- Pay More Than the Minimum. ...
- Focus on High-Interest Debt First. ...
- Pay Off the Card With the Lowest Balance First. ...
- Review Your Expenses. ...
- Use Extra Cash to Pay Down Your Debt. ...
- Home Equity Loan. ...
- Personal Loan. ...
- Balance Transfer.
How long should it take to pay off debt? ›
Calculate the Time to Pay Off Debt
A good rule of thumb is to try to pay off any card balance in 36 months, but you might want to see what it will take to pay off the balance in shorter or longer increments of time. Your actual rate, payment, and costs could be higher.
How to get $40,000 out of debt? ›
Options For Paying Off Substantial Credit Card Debt. There are a number of strategies to pay off large amounts of credit card debt. They include personal loans, 0% APR balance transfer cards, debt settlement, bankruptcy, credit counseling and debt management plans. You may be able to use more than one of these options.
How to clear 20k debt fast? ›
Use a debt consolidation loan
With a debt consolidation loan, you borrow money from a lender and roll all of those debts into one loan with a single interest rate. This allows you to make one monthly payment rather than paying multiple creditors.
How to get $10,000 dollars fast without a loan? ›
How To Make $10k Fast?
- Become A Freelancer. Freelancing is one of the most popular ways to make money quickly. ...
- Invest In Cryptocurrency. ...
- Participate In Online Surveys. ...
- Become A Virtual Assistant. ...
- Do Odd Jobs. ...
- Create An Online Course. ...
- Become An Affiliate Marketer. ...
- Sell Your Stuff.
How to pay off 50k in debt fast? ›
Consider the snowball method of paying off debt.
This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.
How to pay off a $50,000 loan fast? ›
How to pay off a loan early
- Check if you have a prepayment penalty. ...
- Consider switching to biweekly payments. ...
- Make extra payments whenever possible. ...
- Adjust your budget to cut expenses. ...
- Bring in extra income. ...
- Think about refinancing your loan. ...
- Pros of paying off a loan early. ...
- Cons of paying off a loan early.
At that level of debt, you're likely paying hundreds each month -- if not a thousand dollars or more -- just to meet interest payments. And that's not even putting money toward the principal, the heart that's generating more debt. Big debts call for big measures.
How many people have $50,000 in credit card debt? ›
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?
How to clear 30k of debt? ›
Ways to clear your debt
- Informally negotiated arrangement.
- Free debt management plan (DMP )
- Individual voluntary arrangement (IVA)
- Bankruptcy.
- Debt relief order (DRO)
- Administration order.
- Debt consolidation and credit.
- Full and final settlement offer.
Does debt go after 7 years? ›
For most debts, the time limit is 6 years since you last wrote to them or made a payment. The time limit is longer for mortgage debts. If your home is repossessed and you still owe money on your mortgage, the time limit is 6 years for the interest on the mortgage and 12 years on the main amount.
Does debt go away after 7 years? ›
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
How fast can I pay off 10k? ›
Let's say you had that same $10,000 credit card debt at 18% interest mentioned above, and you made a $350 payment every month until it was paid off. In that case, you'd be free of your debt in 38 months. That's 304 months, or just over 25 years, faster than making minimum payments alone.
How to pay off $30k debt in one year? ›
The 6-step method that helped this 34-year-old pay off $30,000 of credit card debt in 1 year
- Step 1: Survey the land. ...
- Step 2: Limit and leverage. ...
- Step 3: Automate your minimum payments. ...
- Step 4: Yes, you must pay extra and often. ...
- Step 5: Evaluate the plan often. ...
- Step 6: Ramp-up when you 're ready.
What is the fastest way to get out of big debt? ›
How to get out of debt
- List out your debt details.
- Adjust your budget.
- Try the debt snowball or avalanche method.
- Submit more than the minimum payment.
- Cut down interest by making biweekly payments.
- Attempt to negotiate and settle for less than you owe.
- Consider consolidating and refinancing your debt.