How to Pay Off $30k in Credit Card Debt | ClearOne Advantage (2024)

FAQs

How to get rid of $30k in credit card debt? ›

If you're able to pay about 5% of the balance each month on a $30,000 credit card bill, it will take 169 months, or about 14 years, to pay off your balance. You'll also pay $17,271.80 in total interest charges over the 14-year time frame.

Options For Paying Off Substantial Credit Card Debt. There are a number of strategies to pay off large amounts of credit card debt. They include personal loans, 0% APR balance transfer cards, debt settlement, bankruptcy, credit counseling and debt management plans. You may be able to use more than one of these options.

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.

Key takeaways. If you take out a loan to consolidate debt, you could see a temporary drop because of the hard inquiry for the new loan. Your credit score can take 30 to 60 days to improve after paying off revolving debt.

If you are over $30k in credit card debt, it may be more than you can handle through do-it-yourself efforts. If you're not making progress on your own, it may be time to contact a professional debt settlement company such as ClearOne Advantage.

Interest charges can become a big part of what you're paying on your credit card each month, especially if your card carries a high interest rate. A high interest rate can make it harder to pay off your debt. If your card has an interest rate of 15% or higher, try transferring your balance to a lower interest card.

How to pay off debt when you are broke? ›

Consider the snowball method of paying off debt.

This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.

"Just add the excess debt payment to the minimum payment of the credit card with (the) highest interest payment," Farmer says. "Once that credit card is paid in full, add that entire payment toward your second highest interest credit card, then your third and so on until your debt is paid in full."

Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?

Use a debt consolidation loan

This allows you to make one monthly payment rather than paying multiple creditors. You may also get a better rate compared to your credit card APYs, saving you money in interest. A debt consolidation loan is especially useful if you are trying to pay off multiple credit cards.

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.