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 $20,000 in 3 years? ›
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.
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 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.
Is 20k in 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.
What is the minimum payment on a $20,000 credit card? ›
Let's say you have a balance of $20,000, and your credit card's APR is 20%, which is near the current average. If your card issuer uses the interest plus 1% calculation method, your minimum payment will be $533.33. That's quite a bit of money to pay for your credit card bill every month.
How can I pay off 15k in debt fast? ›
4 ways to pay off $15,000 in credit card debt fast
- Take advantage of debt relief programs.
- Use a home equity loan to cut the cost of interest.
- Use a 401k loan.
- Take advantage of balance transfer credit cards with promotional interest rates.
Below are the methods you should consider to pay off your car loan faster:
- Refinance your car loan.
- Split Your Bill Into Two Biweekly Payments.
- Make a large down payment.
- Round up your car payments.
- Review additional car expenses.
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $20,000 | 3 | $617.45 |
| $20,000 | 5 | $415.07 |
| $25,000 | 3 | $771.81 |
| $25,000 | 5 | $514.57 |
13 more rowsGenerally, you'll need a good to excellent credit score — 670 or higher — to qualify for a $20,000 loan. The higher your credit score, the better your chances of qualifying for a loan and securing a lower interest rate.
What happens if I pay an extra $100 a month on my car loan? ›
Your car payment won't go down if you pay extra, but you'll pay the loan off faster. Paying extra can also save you money on interest depending on how soon you pay the loan off and how high your interest rate is.
How to pay off $30,000 in debt in 2 years? ›
To pay off $30,000 in credit card debt within 36 months, you will need to pay $1,087 per month, assuming an APR of 18%. You would incur $9,116 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 debt when you are broke? ›
- Step 1: Take Inventory of Your Debts. ...
- Step 2: Create a Realistic Budget. ...
- Step 3: Avoid Any New Debts. ...
- Step 4: Try the Debt Avalanche Method. ...
- Step 5: Consider the Debt Snowball Method. ...
- Step 6: Increase Your Income. ...
- Step 7: Negotiate a Better Rate. ...
- Step 8: Increase Your Credit Score.
Advertising Disclosures
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|
| $20,000 | 3 | $617.45 |
| $20,000 | 5 | $415.07 |
| $25,000 | 3 | $771.81 |
| $25,000 | 5 | $514.57 |
13 more rowsRepresentative 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 rowsSaving $20,000 in one year is a lot. Simply looking at this number can feel overwhelming, so Catie Hogan, head of curriculum and founding financial coach at Parthean recommended breaking it down into more digestible chunks. “Saving $20,000 per year is about $1,667 per month or about $385 per week,” she said.
