To pay off $8,000 in credit card debt within 36 months, you will need to pay $290 per month, assuming an APR of 18%. You would incur $2,431 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 $8,000 over different time frames, assuming a 12-month 0% APR period, a 3% balance transfer fee, and an 18% regular APR.
Paying Off $8,000 with a 0% APR Balance Transfer Card
| Months to Payoff | Monthly Payment | Total Interest Paid | Total Savings vs. Regular Card |
| 12 | $687 | $0 | $567 |
| 24 | $360 | $396 | $962 |
| 36 | $257 | $1,029 | $1,162 |
| 48 | $208 | $1,745 | $1,321 |
| 60 | $179 | $2,516 | $1,467 |
Of course, these aren’t the only timelines that you could commit to with $8,000 in debt. To price out more options, try WalletHub’s debt payoff calculator. This calculator can also help you decide if transferring the $8,000 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 $8,000 in debt. In fact, there are many options to consider, each suited for slightly different situations.
Ways to Pay Off $8,000 in Credit Card Debt
- 0% APR Credit Card
- Personal Loan
- Debt Settlement
- Debt Management Plan
- Bankruptcy
0% APR Credit 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 $8,000 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 $8,000 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
To pay off $8,000 in credit card debt within 36 months, you will need to pay $290 per month, assuming an APR of 18%. You would incur $2,431 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 $7,000 in credit card debt fast? ›
7 ways to pay off debt fast
- Pay more than the minimum payment every month. ...
- Tackle high-interest debts with the avalanche method. ...
- Set up a payment plan. ...
- Put extra money toward paying off your debts. ...
- Start a side hustle. ...
- Limit unnecessary spending. ...
- Don't let your debt hit collections.
Some of it is made up of credit card charges, which are notoriously difficult and expensive to pay off.
- 4 ways to pay down debt fast. ...
- Use a popular debt repayment strategy. ...
- Apply for a debt consolidation loan. ...
- Consider a balance transfer credit card. ...
- Use a debt relief program.
Debt avalanche: Make minimum payments on all but your credit card with the highest interest rate. Send all excess payments to that card account. Once you pay that account off, send all excess payments to your next highest rate. Repeat until all of your debts are paid off.
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 long will it take to pay off $8000 in credit card debt? ›
It will take 24 months to pay off $8,000 with payments of $400 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 to pay off debt when you live paycheck to paycheck? ›
Tips for Getting Out of Debt When You're Living Paycheck to Paycheck
- Tip #1: Don't wait. ...
- Tip #2: Pay close attention to your budget. ...
- Tip #3: Increase your income. ...
- Tip #4: Start an emergency fund – even if it's just pennies. ...
- Tip #5: Be patient.
If you pay off your cards with new financing, but run up a balance on the original accounts again, you could set yourself up for severe financial and credit problems later. Also, if you plan to apply for new financing, it's best if your credit score is either good or excellent.
How to pay off credit card debt when you have no money? ›
- Using a balance transfer credit card. ...
- Consolidating debt with a personal loan. ...
- Borrowing money from family or friends. ...
- Paying off high-interest debt first. ...
- Paying off the smallest balance first. ...
- Bottom line.
The general rule of thumb is that you shouldn't spend more than 10 percent of your take-home income on credit card debt.
Here are seven tips that can help:
- Figure out your budget.
- Reduce your spending.
- Stop using your credit cards.
- Look for extra income and cash.
- Find a payoff method you'll stick with.
- Look into debt consolidation.
- Know when to call it quits.
Filing for Chapter 7 bankruptcy could discharge (forgive) all of your credit card debt. However, bankruptcy should only be considered as a last resort option due to the lasting damage it will cause to your credit. Bankruptcy will remain on your credit for up to 10 years after the filing date.
Will credit card companies forgive debt? ›
The only way credit card companies are likely to forgive the full amount of your balances is if you file bankruptcy. However, there are other ways to get out of debt in a reasonable amount of time. For example, you may be able to have a portion of your credit card balances forgiven with a debt settlement program.
What is the minimum payment on a $7000 credit card? ›
Example: Your card issuer requires you to pay 3% of your outstanding loan balance. You owe $7,000 on your credit card. The minimum payment is 3% of $7,000, or $210.
How to pay off $10,000 fast? ›
7 ways to pay off $10,000 in credit card debt
- Opt for debt relief.
- Use the snowball or avalanche method.
- Find ways to increase your income.
- Cut unnecessary expenses.
- Seek credit counseling.
- Use financial windfalls.
Minimum Payment on a $3,000 Credit Card Balance by Issuer
| Issuer | Standard Minimum Payment |
|---|
| Capital One | $30 |
| Chase | $35 |
| Citibank | $45 |
| Credit One | $150 |
6 more rowsOct 19, 2021
- Using a balance transfer credit card. ...
- Consolidating debt with a personal loan. ...
- Borrowing money from family or friends. ...
- Paying off high-interest debt first. ...
- Paying off the smallest balance first. ...
- Bottom line.
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.
Will my credit score go up if I pay off my credit card in full? ›
If you're close to maxing out your credit cards, your credit score could jump 10 points or more when you pay off credit card balances completely. If you haven't used most of your available credit, you might only gain a few points when you pay off credit card debt.
How do you pay off aggressively debt? ›
Make debt payments beyond the minimum.
Making more than your required minimum payment can help you pay off debts more quickly and save money in interest charges. Earmark unanticipated funds, such as your tax return or a bonus, for debt payments.
