How long does it take to pay off my credit card debt?

Credit cards are used by almost everyone these days, as they are convenient and easier to carry around than cash. They work by lending cardholders money on short notice and having them pay off the money in smaller amounts over time. Each month, cardholders need to pay a minimum amount to avoid getting charged a late fee. If you pay the minimum fee but the total amount you pay is less than the total amount owed, the remaining debt is carried over to the next month, and your credit card issuer will charge you interest.

However, if you aren’t careful with your spending, it is easy to dig yourself into debt. If you continue to only make the minimum payment, it is easy for interest to accumulate. If this happens, you may wonder how long it will take to pay off your debt. The amount of time it will take for you to pay off your credit card debt will essentially depend on the amount you owe, your payment plan and your interest rate.

The higher your interest rate and amount of debt, the longer it will take for you to pay off your credit card debt. To find out an estimate of how long it will take you to pay off your debt given your circumstances, enter your information into a credit card repayment calculator.

How do I pay off my credit card debt?

If you find yourself to be burdened with debt, there are steps you can take to help alleviate your predicament. The first step is to come up with a debt payoff plan.

One strategy you can take to pay off your credit card debt is to make the minimum payment each month and pay as much extra money as possible on top of that. This helps slow down the rate at which interest accumulates in your account.

If you find that you have no money to spare towards helping pay off your debt, you can also transfer your credit card balance to a different card with a lower interest rate, known as a balance transfer. A balance transfer helps reduce the interest rate on your debt, making it more manageable. Here is a list of low-interest credit cards that are great for balance transfers.

Another strategy you can use to help pay off your credit card debt is to pay it off with a low-rate personal loan. Personal loan interest rates are often lower than credit card interest rates, but make sure to follow the terms of the loan carefully, or else you may find yourself in an even worse situation.

Debt settlement is another option for paying off credit card debt. Debt settlement is a negotiation in which a creditor agrees to accept a partial payment to satisfy your credit card debt rather than a full balance. This is mainly geared toward those who have undergone hardships like job loss, medical problems or divorce, but some creditors will consider settling debts even if you don’t have any special circumstances. This strategy works best for those who are already past-due on their credit card payments and can afford to make large, one-time settlement payments to their creditors. You can settle debts on your own or hire a professional debt settlement company to handle it for you.

If you’ve exhausted all your other options, declaring bankruptcy can be seen as a last resort. However, bankruptcy can be bad for your credit. There are two types of bankruptcy: Chapter 7, which often requires you to surrender some of your property, and Chapter 13, which allows you to keep your property. Declaring either type of bankruptcy can be long and expensive, as you will have to pay attorney and court filing fees. Before filing for bankruptcy you also have to seek credit counseling approved by the Department of Justice.

Conclusion

The amount of time it will take for you to pay off your credit card debt will vary depending on your circumstances. It is important to be careful with spending on your credit card, as it is easy to dig yourself into debt. However, if you do find yourself in debt, there are some strategies you can take, such as balance transfers, low-rate personal loans, debt settlement and even bankruptcy.