How long will it take to pay off $30,000 in debt?

If you only make the minimum payment each month, it will take about 460 months, or about 38 years , to pay off that $30,000 balance.

What is the avalanche method?

In contrast, the "avalanche method" focuses on paying the loan with the highest interest rate loans first . Similar to the "snowball method," when the higher-interest debt is paid off, you put that money toward the account with the next highest interest rate and so on, until you are done.

How long does it take to pay off a $30,000 dollar loan?

It will take 41 months to pay off $30,000 with payments of $1,000 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.

Does debt consolidation hurt your credit?

If you do it right, debt consolidation might slightly decrease your score temporarily . The drop will come from a hard inquiry that appears on your credit reports every time you apply for credit. But, according to Experian, the decrease is normally less than 5 points and your score should rebound within a few months.

Is national debt relief legitimate?

Is National Debt Relief legit? National Debt Relief is an accredited member of the American Association for Debt Resolution (AADR) . It has been around since 2009 and has helped over 600,000 individuals reduce their debt. It also has an A+ rating from the BBB (Better Business Bureau).

How to wipe credit card debt?

Outside of bankruptcy or debt settlement, there are really no other ways to completely wipe away credit card debt without paying. Making minimum payments and slowly chipping away at the balance is the norm for most people in debt, and that may be the best option in many situations.

Is accredited debt relief legit?

Accredited Debt Relief is a legitimate company helping struggling individuals and families reduce the amount of unsecured debt they owe. The company has an A+ rating with the BBB and thousands of positive customer reviews online.

What is the snowball pay off debt?

Debt snowball is a strategy for paying down debts that involves paying off your smallest debts first, then moving on to the next smallest. The debt snowball method can be ideal for people who want to stay motivated seeing their debt fully paid down.

How to pay off massive credit card debt?

Try the avalanche method Make the minimum monthly payment on each, but throw all your extra cash at the highest interest debt. This is sometimes called the debt avalanche method of repayment — “avalanche,” because you're prioritizing taking down your most expensive debts in the long term first.

Which debt payoff method is best?

In terms of saving money, a debt avalanche is better because it saves you money in interest by targeting your highest-interest debt first. However, some people find the debt snowball method better because it can be more motivating to see a smaller debt paid off more quickly.

How long to pay off 30k student debt?

Let's assume you owe $30,000, and your blended average interest rate is 6%. If you pay $333 a month, you'll be done in 10 years. But you can do better than that. According to our student loan calculator, you'd need to pay $913 per month to put those loans out of your life in three years .

The 6-step method that helped this 34-year-old pay off $30,000 of credit card debt in 1 year (2024)

As an immigrant who moved alone to the U.S. from Jamaica at age 17, Jordanne Wells didn't know much about managing finances in her 20s.

She graduated from college with eight credit cards, and eventually found herself $30,000 deep in credit card debt.

While Wells had a steady income at the time and was already a savvy shopper — using coupons, buying clearance and generic brands — she realized her debt was holding her back from doing the things she wanted to do.

"The debt itself wasn't hurting me," says Wells, now a personal finance blogger at Wise Money Women. "I realized it was what I couldn't do because I was servicing my debt. That realization flipped a switch in my head."

Instead of just getting by making theminimum payments on her credit card debt, Wells decided it was time to make some drastic changes.

CNBC Selectspoke with Wells about the six-step method she created— what she calls the debt "S-L-A-Y-E-R" system — that kick-started her payoff journey and helped her get rid of her credit card debt within a year. Here are the steps:

Step 1: Survey the land

The first step in Wells' payoff plan is to organize your debt. Gather all the details of your outstanding balances.

Make a list of who you owe, how much you owe, the interest rates, minimum payments and due dates. After you have all the information laid out in front of you, calculate how much your monthly payments are to cover your debt.

Step 2: Limit and leverage

In order to avoid any temptation to score a new sign-up bonus on a credit card, opt out of receiving any additional new credit card offers. Then leverage your current income as much as possible. This could include cutting back on monthly expenses, like subscription or streaming services, to have more money for paying off your debt.

Step 3: Automate your minimum payments

To keep your credit card accounts in good standing, you want to make sure you at least pay the minimum amount due on your bills on time each month. This will help protect your credit score as payment history is the most important factor in determining that important 3-digit number.

To make it easy, automate these payments so the money is taken out of your account every month on time and you don't have to think about it.

Step 4: Yes, you must pay extra and often

Wells credits her success paying off 5-figure debt in 12 months to the extra payments she made as often as she could. "No matter if it's $10 or $100, make the payment," she says.

Even if it doesn't feel like you can afford to pay much more than the minimums, know that every cent counts. Wells once made an additional payment of 60 cents toward her credit card debt because she knew every bit would help and as soon as she had extra cash, she put it right toward her debt. "I knew that if I didn't I would've spent it," she says.

Step 5: Evaluate the plan often

Once you get started on your debt payoff journey, track your plan to make sure it still works for your lifestyle and adjust as needed.

For Wells, she decided to open abalance transfer credit card so she could pay off her debt with no interest. Once she consolidated her high-interest credit card debt, she made a plan to pay extra every single month during the introductory interest-free period.

Balance transfer cards are a great way to save money while paying off your debt, since you don't accrue additional interest during the intro period. Just note that most cards, like the U.S. Bank Visa® Platinum Card and the Citi Simplicity® Card, require good or excellent credit to qualify.

While you track your plan, it helps to keep an eye on your successes, too. Finance expert Sallie Krawcheck suggests carrying around an index card in your wallet and checking off when you pay off a chunk of debt so that you feel a sense of momentum in your payoff journey.

Step 6: Ramp-up when you 're ready

Once your plan is up and running and you are comfortable with the system, Wells says that it is then time to accelerate the debt payoff. She suggests refinancing with your card issuer for better terms or finding more funds to pay off your debt. If you're not sure where to turn, check out these easy ways to earn extra money from your couch.

As you pay down your credit card balances, watch your credit score slowly rise since your utilization rate is decreasing.

Debt payoff is a journey, and for most people, it's not something that can happen overnight. Wells was able to find a plan that worked for her and kept her motivated. The most important thing is to decide on a plan and get started. Here are a few more stories that may inspire you:

Don't miss:

How to achieve financial freedom and pay off debt, according to a financial expert who paid off $87,000
3 common myths about being in debt that are stopping you from paying it off
These newlyweds paid off $21,000 in credit card debt by following their own rules—here’s exactly how they did it
How a 39-year-old paid off $16,397 in credit card debt in less than a year (and hasn’t paid a cent in interest since)

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.