To pay off $10,000 in credit card debt within 36 months, you will need to pay $362 per month, assuming an APR of 18%. You would incur $3,039 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.
The average length of a 0% APR balance transfer intro period is 13 months, according to WalletHub’s Credit Card Landscape Report, and the average balance transfer fee is 3.1% of the transferred amount. Below, you can see how much you could save while paying off $10,000 over different time frames, assuming a 12-month 0% APR period, a 3% balance transfer fee, and an 18% regular APR.
Paying Off $10,000 with a 0% APR Balance Transfer Card
| Months to Payoff | Monthly Payment | Total Interest Paid | Total Savings vs. Regular Card |
| 12 | $858 | $0 | $709 |
| 24 | $450 | $495 | 1,202 |
| 36 | $322 | $1,286 | $1,453 |
| 48 | $260 | $2,182 | $1,651 |
| 60 | $224 | $3,146 | $1,833 |
Of course, these aren’t the only timelines that you could commit to with $10,000 in debt. To price out more options, try WalletHub’s debt payoff calculator. This calculator can also help you decide if transferring the $10,000 in debt to a 0% APR balance transfer credit card would save you money.
Getting a 0% APR credit card isn’t the only way to pay off $10,000 in debt. In fact, there are many options to consider, each suited for slightly different situations.
Ways to Pay Off $10,000 in Credit Card Debt
- 0% APR Credit Card
- Personal Loan
- Debt Settlement
- Debt Management Plan
- Bankruptcy
0% APR Card
0% APR credit cards allow you to avoid interest while paying down your debts. These cards can offer 0% introductory periods on new purchases or balance transfers for up to 21 months.
Keep in mind that you may have to pay a balance transfer fee, which is usually around 3% of the transferred amount. Also, if you decide to transfer your debt to one of these credit cards, do your best to pay it off before the 0% intro period ends and the typically-high regular interest rate kicks in.
Personal Loan
Personal loans can be used to pay off $10,000 in credit card debt, assuming you can qualify for a big enough loan with a lower interest rate than your current credit card interest rate. This depends heavily on your creditworthiness.
Debt Settlement
Debt settlement is when the debtor negotiates with the creditor to pay a lump-sum that covers less than the total amount of the debt. In return, the creditor will forgive part of the debt, as well as other outstanding fees. This option is good for people who have enough money to make a large payment all at once. When taking this route, just be careful not to overextend yourself financially, or you’ll likely just end up back in debt.
Debt Management Plan
Debt management plans allow the cardholder and the lender to amend the original payment agreement by lengthening the repayment term, lowering the interest rate, and perhaps even waiving fees. Each of these modifications is meant to make the repayment process more manageable for the cardholder. Keep in mind, though, that cardholders are still expected to pay the full $10,000 with these plans.
Bankruptcy
Bankruptcy should only be used as a last resort. While declaring bankruptcy may help you clear your debt, it will also damage your credit score for years.
This answer was first published on 02/07/24. 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
1. Debt consolidation loan. Debt consolidation allows you to roll multiple debts into one monthly payment, and potentially reduce your interest rate — which could mean paying less monthly toward debt or paying it off faster. One way to consolidate credit card debt is with a personal loan.
How to pay off 10,000 credit card debt fast? ›
1. Debt consolidation loan. Debt consolidation allows you to roll multiple debts into one monthly payment, and potentially reduce your interest rate — which could mean paying less monthly toward debt or paying it off faster. One way to consolidate credit card debt is with a personal loan.
How long does it take to pay off a $10,000 credit card? ›
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.
What is the correct way to pay off a credit card? ›
Paying off high-interest debt first
If you have debt across multiple cards, it's a good idea to use the avalanche method — where you pay off the balance on the card with the highest interest rate first, then work your way through the rest from highest to lowest APR.
Is $10k in credit card debt bad? ›
Having any credit card debt can be stressful, but $10,000 in credit card debt is a different level of stress. The average credit card interest rate is over 20%, so interest charges alone will take up a large chunk of your payments. On $10,000 in balances, you could end up paying over $2,000 per year in interest.
What is the best way to wipe out 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.
What is the minimum payment on 10000 credit card debt? ›
If you only make minimum payments, a $10,000 credit card balance will cost you $16,056.59 in interest and take 346 months to pay off. Minimum payments on a $10,000 balance would start at $267 and decrease as you paid down what you owe.
What is the best order to pay off credit card debt? ›
Pay off high-interest credit cards first
This is called the “debt avalanche method.” While some advocate for paying off your smallest debt first because it seems easier, you may save more on interest over time by chipping away at high-interest debt.
How do I pay off my credit card smartly? ›
Here are several techniques for paying off credit card debt the smart way.
- Try the avalanche method. ...
- Test the snowball method. ...
- Consider a balance transfer credit card. ...
- Get your spending under control. ...
- Grow your emergency fund. ...
- Switch to cash. ...
- Explore debt consolidation loans.
“Consumers can use a settlement company [to negotiate], or they can do it on their own,” Jacob says. “There's no need to pay a company to settle for you. Save the fees and do the work yourself.” If you've decided to negotiate on your own behalf after weighing your options, it's time to call your credit card company.
Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief.
How to pay off credit card debt when you have no money? ›
Ask your lenders about financial hardship programs
Many lenders offer financial hardship programs that provide short-term relief from high interest rates and minimum payments. That relief could make it possible for you to pay your credit card debt off faster.
What is 30% of $10,000 credit limit? ›
Most credit experts advise keeping your credit utilization below 30 percent, especially if you want to maintain a good credit score. This means if you have $10,000 in available credit, your outstanding balances should not exceed $3,000.
How long will it take to pay off $20,000 in credit card debt? ›
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 to pay off $5,000 credit card with minimum payment? ›
During that time, you'll pay a total of $9,332.25 in interest for a total payoff cost of $14,332.25. 2.5% of the balance (inclusive of interest): It would take 505 months to get rid of your $5,000 credit card balance making just minimum payments at 2.5% of your balance. That's over four decades of payments.
How do I pay off my credit card debt if I am poor? ›
Here's how to lower or pay off your credit card debt in five steps.
- Find a payment strategy or two.
- Consider debt consolidation.
- Work with your creditors.
- Seek help through debt relief.
- Lower your living expenses.
Apply for a debt consolidation loan.
Debt consolidation allows you to convert multiple debts, commonly several credit card balances, into a single loan. That can make repayment simpler, and can help you budget since you'll be required to make a fixed payment toward the loan each month.
