To pay off $2,000 in credit card debt within 36 months, you will need to pay $72 per month, assuming an APR of 18%. You would incur $608 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 $2,000 over different time frames, assuming a 12-month 0% APR period, a 3% balance transfer fee, and an 18% regular APR.
Paying Off $2,000 with a 0% APR Balance Transfer Card
| Months to Payoff | Monthly Payment | Total Interest Paid | Total Savings vs. Regular Card |
| 12 | $172 | $0 | $142 |
| 24 | $90 | $99 | $240 |
| 36 | $64 | $257 | $291 |
| 48 | $52 | $436 | $331 |
| 60 | $45 | $629 | $367 |
Of course, these aren’t the only timelines that you could commit to with $2,000 in debt. To price out more options, try WalletHub’s debt payoff calculator. This calculator can also help you decide if transferring the $2,000 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 $2,000 in debt. In fact, there are many options to consider, each suited for slightly different situations.
Ways to Pay Off $2,000 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 $2,000 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 $2,000 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
If you can pay $100 a month, it might take you 25 months to pay off the debt. If the card has the same APR but an annual fee of $100, it might take 29 months. And if you can pay $300 a month for a 20% APR card with a $100 annual fee, it might take you 8 months to pay off $2,000.
How can I pay off 2000 in debt fast? ›
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.
Is $2 000 a lot of credit card debt? ›
$2,000 in credit card debts may not necessarily be considered “bad” depending on individual circ*mstances and financial management. However, it's essential to assess the context surrounding the debt.
What are 3 ways to pay off credit card debt fast? ›
How to pay off credit card debt fast
- In a nutshell. ...
- 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.
To pay off $2,000 in credit card debt within 36 months, you will need to pay $72 per month, assuming an APR of 18%. You would incur $608 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.
What is the minimum payment on a $2000 credit card balance? ›
Minimum Payment on a $2,000 Credit Card Balance by Issuer
| Issuer | Standard Minimum Payment |
|---|
| Capital One | $25 |
| Chase | $35 |
| Citibank | $30 |
| Credit One | $100 |
6 more rowsOct 19, 2021
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.
How to aggressively pay off 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.
How do you pay off debt when you are poor? ›
SHARE:
- Step 1: Stop taking on new debt.
- Step 2: Determine how much you owe.
- Step 3: Create a budget.
- Step 4: Pay off the smallest debts first.
- Step 5: Start tackling larger debts.
- Step 6: Look for ways to earn extra money.
- Step 7: Boost your credit scores.
- Step 8: Explore debt consolidation and debt relief options.
Once this number gets above about 30%, it's bad for your credit. So, if you have $5,000 in credit card debt and $10,000 in credit limits, that 50% utilization would hurt your credit. Late payments: If your credit card payment is late by 30 days or more, the card issuer can report it to the credit bureaus.
The average total balance of a U.S. household is about $7,226. A look at rising interest rates explains how this can become a problem. In November 2021, the interest rate on that credit card debt was 15%. That worked out to $90 per month in interest.
How many people have $50,000 in credit card debt? ›
Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?
How do I pay off my credit card ASAP? ›
Strategies to help pay off credit card debt fast
- Review and revise your budget. ...
- Make more than the minimum payment each month. ...
- Target one debt at a time. ...
- Consolidate credit card debt. ...
- Contact your credit card provider.
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.
Bottom line. If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt.
How long would it take to repay a $2000 credit card debt at a 19% interest rate by making only the minimum required payment of $25 month? ›
Final answer: It would take 6 years and 9 months to repay a $2,000 credit card debt at a 19% interest rate by making only the minimum required payment of $25/month.
Is $5,000 dollars a lot of credit card debt? ›
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt. There are a few things you can do to pay your debt off faster - potentially saving thousands of dollars in the process.
How long does it take to pay off $1,000 on a credit card? ›
It will take 24 months to pay off $1,000 with payments of $50 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? ›
If you owed $5,000 on your credit card at the average interest rate of 21.19% (as of August 2023), and you made a minimum payment of 2% of your card's balance, it would take you 878 months (more than 73 years) to pay off your debt. And during that time period, you would pay a shocking total of $30,797.65 in interest.
