It will take 47 months to pay off $20,000 with payments of $600 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 $2,400 per month, for example, would decrease your payoff timeline to 9 months.
Examples of How Long It Will Take to Pay Off $20,000 on a Credit Card
- If you pay $600 a month, it will take you 47 months to pay off $20,000
- If you pay $1,200 a month, it will take you 20 months to pay off $20,000
- If you pay $1,800 a month, it will take you 13 months to pay off $20,000
- If you pay $2,400 a month, it will take you 9 months to pay off $20,000
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 $20,000 , 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 $20,000 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 $20,000 with payments of $600 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 20k? ›
If you're talking about credit card debt, all you need to do is make minimum monthly payments. At a minimum payment of $200 a month at current interest rates, it will end up costing you $22,644.95 (in addition to the original $20,000!) to pay off all the debt, and it'll take you about 10 years to do it.
How to pay off a $20,000 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.
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 many months would it take to pay off $10000? ›
$10,000 with a 20% APR: Your minimum payment would be $266.67 per month and it would take 346 months to pay off $10,000 at 20% interest.
How much is $20,000 financed for 60 months? ›
For instance, using our loan calculator, if you buy a $20,000 vehicle at 5% APR for 60 months the monthly payment would be $377.42 and you would pay $2,645.48 in interest.
How much a month would a 20k loan be? ›
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $15,000 | 5 | $313.13 |
| $20,000 | 3 | $617.45 |
| $20,000 | 5 | $415.07 |
| $25,000 | 3 | $771.81 |
13 more rowsCheck Your Credit Score.
However, when applying for a larger amount of $20,000 and up, you may need a higher score. A score of around 670 or more will increase your chances of being approved for a larger loan amount at the lowest rates available.
How much is 72 months? ›
72 months equals 6 years, and 84 months equals 7 years.
Is 20 000 in credit card debt a lot? ›
“That's because the best balance transfer and personal loan terms are reserved for people with strong credit scores. $20,000 is a lot of credit card debt and it sounds like you're having trouble making progress,” says Rossman.
If you have $20,000 in credit card debt that you need to pay off in three years or less, you have multiple options to consider, including:
- Take advantage of a debt relief service.
- Consolidate your debt with a home equity loan.
- Take advantage of 0% balance transfer credit cards.
Is $2,000 too much credit card debt? $2,000 in credit card debt is manageable if you can pay more than the minimum each month. If it's hard to keep up with the payments, then you'll need to make some financial changes, such as tightening up your spending or refinancing your debt.
How do you pay off debt when you are broke? ›
How to get out of debt when you have no money
- 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.
Just making two extra mortgage payments a year can save you tens of thousands of dollars and cut years off your loan.
Can you save 10k in 3 months? ›
Saving $10,000 in three months is an ambitious goal, but it's certainly possible with a focused effort and a solid plan. Here are some tips to help you achieve this goal: Set a realistic budget: The first step is to create a budget that reflects your income and expenses.
How long will it take to pay off $25 000 in debt? ›
It will take 43 months to pay off $25,000 with payments of $800 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.
Is 20k in student debt a lot? ›
If those monthly payments look low compared to what most borrowers pay, it's because most borrowers carry a lot more than $20,000 in student loan debt. As of March 2023, the average federal student loan debt in the United States was about $37,720, according to a BestColleges analysis of Education Department data.
How much to pay back $20,000? ›
Representative example
| Loan amount £20,000 | Monthly repayments £386.05 | Length of agreement 60 months |
| Total amount repayable £23,163.00 | Representative 6.1% APR | Fixed Annual Rate of Interest (nominal) 5.9358% |
1 more rowHow long will it take to save?
| Savings Goal | If You Saved $200/month | If You Saved $400/month |
|---|
| $5,000 | 25 months | 13 months |
| $10,000 | 50 months | 25 months |
| $20,000 | 100 months | 50 months |
| $30,000 | 150 months | 75 months |
7 more rowsHaving $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.
