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 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 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.
How long would it take to pay off $5000? ›
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.
What is the minimum payment on a $5000 credit card balance? ›
Apply the percentage to your current credit card balance and then add your fees and past-due amounts. First, you'll owe 2% on the balance of $5,000, then you'll add $120 past due and $80 in late fees. That would make your minimum payment $300.
How to pay off $5000 in debt fast? ›
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. Debt consolidation loans allow you to combine multiple debts into one loan. Some lenders will even send your loan funds directly to your former creditors.
How long does it take to pay off 10,000 credit card debt? ›
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 long is a 5000 dollar loan? ›
$5,000 Personal Loan Terms
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.
Is $5000 a lot of credit card debt? ›
In fact, nearly 25% of U.S. consumers owe more than $5,000 on their credit cards, according to a recent survey by First Tech Federal Credit Union. If that's the boat you're in, you may be eager to pay down that debt. And here are three options to look at in that regard.
How much is the monthly payment on a $5 000 credit card? ›
To pay off $5,000 in credit card debt within 36 months, you will need to pay $181 per month, assuming an APR of 18%. You would incur $1,519 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 much of a $5,000 credit limit should I use? ›
This means you should take care not to spend more than 30% of your available credit at any given time. For instance, let's say you had a $5,000 monthly credit limit on your credit card. According to the 30% rule, you'd want to be sure you didn't spend more than $1,500 per month, or 30%.
How much would a $5000 personal loan cost? ›
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 1 year | 15% | $451 |
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
3 more rowsHow the Debt Snowball works.
- Create an extra $200 per month in your budget.
- Apply that extra $200 to your smallest debt on top of your current minimum payment.
- Pay off your smallest debt balance.
- Take entire payment from your smallest debt and begin applying it to the next greatest.
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 much credit card debt is too much? ›
The general rule of thumb is that you shouldn't spend more than 10 percent of your take-home income on credit card debt.
How long to pay off $5,000 credit card with minimum payment? ›
If you owed $5,000 on your credit card at the average interest rate of 21.19% (as of August 2023), and you made a minimum payment of 2% of your card's balance, it would take you 878 months (more than 73 years) to pay off your debt.
How to pay off $10,000 fast? ›
Here are four of the fastest ways to pay off $10,000 in credit card debt:
- Take advantage of credit card debt forgiveness.
- Consider credit card debt consolidation.
- Use your home equity.
- Ask your lenders about financial hardship programs.
Your credit score can take 30 to 60 days to improve after paying off revolving debt. Your score could also drop because of changes to your credit mix and the age of accounts you leave open.
What would payments be on $5000? ›
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $1,000 | 3 | $30.98 |
| $5,000 | 3 | $153.54 |
| $5,000 | 5 | $104.98 |
| $10,000 | 3 | $313.32 |
13 more rowsIf 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 to pay $10,000 off in a year? ›
But say you put yourself on a one-year payoff plan. Unfortunately, due to interest, you can't just divide $10,000 by 12 and pay $833 a month — interest tacks on a pretty large amount. But you could pay off your credit card in a year if you paid roughly $950 a month for 12 months.
How to pay off a 5 year loan in 4 years? ›
Make bi-weekly payments
Your payments will be applied more often, so less interest can accrue. You'll make 26 half-payments each year, which translates into an extra full payment on the year, thereby shortening the life of the loan by several months or even years.
