It will take 32 months to pay off $5,000 with payments of $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 $800 per month, for example, would decrease your payoff timeline to 7 months.
Examples of How Long It Will Take to Pay Off $5,000 on a Credit Card
- If you pay $200 a month, it will take you 32 months to pay off $5,000
- If you pay $400 a month, it will take you 14 months to pay off $5,000
- If you pay $600 a month, it will take you 9 months to pay off $5,000
- If you pay $800 a month, it will take you 7 months to pay off $5,000
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 $5,000 , 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 $5,000 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 last updated on 12/13/23 and it was first published on 12/05/23. 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
1% of the balance plus interest: You would pay off $5,000 in 285 months. That means it would take nearly 24 years to eliminate your $5,000 balance if you only make minimum payments. During that time, you'll pay a total of $9,332.25 in interest for a total payoff cost of $14,332.25.
How quickly can I pay off $5000? ›
Transferring your balances to a single loan or card with lower rates can save you money on interest and help you pay off debt faster. Paying off $5,000 in debt can take anywhere from six months with a balance transfer card to almost 19 years if you just make minimum payments.
How to pay off a $5000 loan fast? ›
5 Ways To Pay Off A Loan Early
- Make bi-weekly payments. Instead of making monthly payments toward your loan, submit half-payments every two weeks. ...
- Round up your monthly payments. ...
- Make one extra payment each year. ...
- Refinance. ...
- Boost your income and put all extra money toward the loan.
To pay off $4,000 in credit card debt within 36 months, you will need to pay $145 per month, assuming an APR of 18%. You would incur $1,215 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 $50,000 in debt in 1 year? ›
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.
Take a strategic approach
- Debt snowball: With the debt snowball method, you make minimum payments to all your credit card lenders with the exception of your lowest balance. Send all of the extra money to this account. ...
- Debt avalanche: Make minimum payments on all but your credit card with the highest interest rate.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt.
How many months for a $5,000 dollar loan? ›
Repayment terms for a $5,000 personal loan are usually in the range of two to seven years. The length of the repayment term will play a role in determining the monthly payment amount and the interest rate. Your credit score will also affect the interest rate.
How hard is it to get approved for a $5,000 loan? ›
You will almost certainly have no problems qualifying for a $5,000 personal loan if you have a substantial income and good credit. However, you may struggle to get approved if your income is inconsistent, you have a low credit score, or you already have considerable debt.
Can you borrow $5000 from bank? ›
Where to get a $5,000 personal loan. You can get a $5,000 personal loan by applying for financing with a bank, credit union or online lender. Each potential lender comes with its own eligibility requirements — such as a minimum credit score or debt-to-income ratio limit.
Here are the ways to consider getting $5,000 fast.
- Sell Items You Already Have. The first step in making $5,000 fast is to leverage what you already have. ...
- Rent Out Space. ...
- Become a Rideshare Driver. ...
- Teach Online. ...
- Get a Car Wrap. ...
- Sell Stock Photos. ...
- Consider Freelancing. ...
- Flip items online.
How to make $1,000 fast
- Sell stuff you already own.
- Deliver food.
- Pick up a part-time job.
- Rent out unused space.
- Start freelance writing.
- Try affiliate marketing.
- Drive for a ridesharing service.
- Find odd jobs.
If you're looking for practical ideas on how to get out of debt, consider the following tips.
- Create a budget plan. ...
- Pay more than your minimum balance. ...
- Pay in cash rather than by credit card. ...
- Sell unwanted items and cancel subscriptions. ...
- Remove your credit card information from online stores.
U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless. Paying off a high credit card balance can be a daunting task, but it is possible.
How to be debt free in 6 months? ›
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.
While that certainly isn't a small amount of money, it's not as catastrophic as the amount of debt some people have. In fact, a $1,000 balance may not hurt your credit score all that much. And if you manage to pay it off quickly, you may not even accrue that much interest against it.
How to pay off a 30 year loan in 5 years? ›
There are some easy steps to follow to make your mortgage disappear in five years or so.
- Setting a Target Date. ...
- Making a Higher Down Payment. ...
- Choosing a Shorter Home Loan Term. ...
- Making Larger or More Frequent Payments. ...
- Spending Less on Other Things. ...
- Increasing Income.
Eligibility requirements for personal loans vary by lender, although you'll have the best chances of approval if you have a reliable income and a good credit score of 670 or higher. Some of the best lenders with $5,000 personal loans include SoFi, Discover, Upgrade, Upstart, and PenFed Credit Union.
How many months would it take to pay off $3000? ›
To pay off your balance of $3,000 in 12 months, you will need to make monthly payments of $262 and make no additional charges to your card. If you make monthly charges of $0 and monthly payments of $100 you will pay off your balance in 34 months or 2.83 years.
