It will take 21 months to pay off $7,000 with payments of $400 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 $1,600 per month, for example, would decrease your payoff timeline to 6 months.
Examples of How Long It Will Take to Pay Off $7,000 on a Credit Card
- If you pay $400 a month, it will take you 21 months to pay off $7,000
- If you pay $800 a month, it will take you 10 months to pay off $7,000
- If you pay $1,200 a month, it will take you 7 months to pay off $7,000
- If you pay $1,600 a month, it will take you 6 months to pay off $7,000
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 $7,000 , 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 $7,000 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 21 months to pay off $7,000 with payments of $400 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 $6000 in debt fast? ›
Pay off your debt and save on interest by paying more than the minimum every month. The key is to make extra payments consistently so you can pay off your loan more quickly. Some lenders allow you to make an extra payment each month specifying that each extra payment goes toward the principal.
What is the average payment on a $7000 loan? ›
Monthly payments for a $7,000 personal loan
| Loan duration | Average monthly payments ($7,000 loan) | |
|---|
| Poor credit | Excellent credit |
|---|
| 1–12 months | $826.51 | $646.88 |
| 13–24 months | $367.03 | $318.62 |
| 25–36 months | $264.41 | $221.24 |
1 more rowMar 7, 2024
1% of the balance plus interest: It would take 29.5 years or 354 months to pay off $10,000 in credit card debt making only minimum payments. You would pay a total of $19,332.21 in interest over that period.
How to pay off $5000 quickly? ›
Credit card refinancing can help you pay off $5,000 in credit card debt much faster because a personal loan comes with a predetermined end date. You can even look into fast personal loans if you're in need of money as soon as possible. Debt consolidation loans allow you to combine multiple debts into one loan.
How to get rid of 7000 debt? ›
In order to pay off $7,000 in credit card debt within 36 months, you need to pay $254 per month, assuming an APR of 18%. While you would incur $2,127 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.
How can I pay off my debt in 5 months? ›
If you want to get out of debt as quickly as possible, list your debts from the highest interest rate to the lowest. Make the minimum monthly payment on each, but throw all your extra cash at the highest interest debt.
How long will it take me to pay off $7000? ›
It will take 21 months to pay off $7,000 with payments of $400 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 much do you pay back on a $7000 loan? ›
Representative example
| Loan amount £7,000 | Monthly repayments £216.05 | Length of agreement 36 months |
| Total amount repayable £7,777.80 | Representative 7.2% APR | Fixed Annual Rate of Interest (nominal) 6.9728% |
1 more rowYes, you can get a $7,000 loan with bad credit if you have enough income to afford the monthly payments, but the loan is likely to have a high interest rate. Several lenders offer $7,000 personal loans for people with credit scores under 640, and a few may not even require a credit check at all.
The fastest ways to pay off debt
- Take advantage of debt relief services.
- Reduce interest where possible.
- Focus on your highest interest rate first.
- Take advantage of opportunities to earn extra income.
- Cut expenses where possible.
Key Takeaways
Paying more than the minimum payment can help you get out of debt, but 0% interest options offer a faster way out. With a balance transfer credit card offer, you can save on interest and use that savings to pay down more of your balance so it takes less time to pay off your card.
How to pay off debt when living paycheck to paycheck? ›
Tips for Getting Out of Debt When You're Living Paycheck to Paycheck
- Tip #1: Don't wait. ...
- Tip #2: Pay close attention to your budget. ...
- Tip #3: Increase your income. ...
- Tip #4: Start an emergency fund – even if it's just pennies. ...
- Tip #5: Be patient.
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.
