It will take 47 months to pay off $50,000 with payments of $1,500 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 $6,000 per month, for example, would decrease your payoff timeline to 9 months.
Examples of How Long It Will Take to Pay Off $50,000 on a Credit Card
- If you pay $1,500 a month, it will take you 47 months to pay off $50,000
- If you pay $3,000 a month, it will take you 20 months to pay off $50,000
- If you pay $4,500 a month, it will take you 13 months to pay off $50,000
- If you pay $6,000 a month, it will take you 9 months to pay off $50,000
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 $50,000 , 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 $50,000 with specific interest rates and monthly payments.
Finally, it’s worth noting that other types of borrowing, such as personal loans, mortgages, home equity loans, car loans and student loans, will give you a set repayment term from the start. You won’t need to figure out how long it will take to pay off the balance. But you can always pay back what you owe in a shorter amount of time by making larger monthly payments. Just make sure your lender doesn’t have a penalty for early payoff – most don’t.
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 $50,000 with payments of $1,500 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 to pay off $50,000 in debt fast? ›
Here are some paths forward you may consider, depending on your financial situation and preferences.
- 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.
Here are a few tips to tackle a $50,000 debt in the span of a year.
- Create a budget and track your income and spending. ...
- Be mindful of debt fatigue. ...
- Prioritize paying high-interest debt first. ...
- Get a higher-paying new job. ...
- Freelance on the side. ...
- Negotiate with your credit card companies and other creditors.
It's never easy to get out from under your credit card debt. But it's one thing to have $6,473 (the average American credit card debt) and another to have $50,000 or more. At that level of debt, you're likely paying hundreds each month -- if not a thousand dollars or more -- just to meet interest payments.
How quickly can you pay off $5000? ›
Considering a 24% interest rate, here's how long you will likely take to pay off $5,000 in credit card debt with minimum payments based on some common minimum payment calculations: 1% of the balance plus interest: You would pay off $5,000 in 285 months.
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 pay $60,000 in debt off? ›
Here are seven tips that can help:
- Figure out your budget.
- Reduce your spending.
- Stop using your credit cards.
- Look for extra income and cash.
- Find a payoff method you'll stick with.
- Look into debt consolidation.
- Know when to call it quits.
Here's what a $50,000 loan would cost you each month
| 8.00% |
|---|
| Two-Year Repayment | $2,261.36/month, $4,272.75 in interest over time |
| Seven-Year Repayment | $779.31/month, $15,462.10 in interest over time |
| 10-Year Repayment | $606.64/month, $22,796.56 in interest over time |
Jan 20, 2024
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| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $35,000 | 3 | $1080.54 |
| $35,000 | 5 | $726.37 |
| $50,000 | 3 | $1578.15 |
| $50,000 | 5 | $1049.85 |
13 more rowsIf you make $50,000 a year, your monthly salary would be $4,166.93.
A FICO score below 580 or a VantageScore of less than 601 is considered a bad credit score.
Is it bad to have a lot of credit cards with zero balance? ›
However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.
What is the 28 36 rule? ›
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
How to pay off debt fast with low income? ›
SHARE:
- Step 1: Stop taking on new debt.
- Step 2: Determine how much you owe.
- Step 3: Create a budget.
- Step 4: Pay off the smallest debts first.
- Step 5: Start tackling larger debts.
- Step 6: Look for ways to earn extra money.
- Step 7: Boost your credit scores.
- Step 8: Explore debt consolidation and debt relief options.
7 ways to pay off $10,000 in credit card debt
- Opt for debt relief.
- Use the snowball or avalanche method.
- Find ways to increase your income.
- Cut unnecessary expenses.
- Seek credit counseling.
- Use financial windfalls.
Tips for How to Get Out of Debt Fast
- Lower your expenses. Once you've made your budget, go through it line by line and see where you can cut back on your spending. ...
- Increase your income. Think of your income as a shovel. ...
- Cut up your credit cards. ...
- Know your why. ...
- Take Financial Peace University.
Paying off $50,000 in credit card debt will require dedication, consistency and extra payments. To make the last one possible, it's important to understand how much money you're working with every month and where it's going.
How do you pay off aggressively debt? ›
Make debt payments beyond the minimum.
Making more than your required minimum payment can help you pay off debts more quickly and save money in interest charges. Earmark unanticipated funds, such as your tax return or a bonus, for debt payments.
How can I pay off my debt if I don't have enough money? ›
How to get out of debt on a low income
- Sign up for a debt relief program.
- Cut expenses to free up extra cash.
- Take advantage of opportunities to earn more money.
- Use financial windfalls to your advantage.
The "snowball method," simply put, means paying off the smallest of all your loans as quickly as possible. Once that debt is paid, you take the money you were putting toward that payment and roll it onto the next-smallest debt owed. Ideally, this process would continue until all accounts are paid off.
