To pay off $30,000 in credit card debt within 36 months, you will need to pay $1,087 per month, assuming an APR of 18%. You would incur $9,116 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 $30,000 over different time frames, assuming a 12-month 0% APR period, a 3% balance transfer fee, and an 18% regular APR.
Paying Off $30,000 with a 0% APR Balance Transfer Card
| Months to Payoff | Monthly Payment | Total Interest Paid | Total Savings vs. Regular Card |
| 12 | $2,575 | $0 | $2,127 |
| 24 | $1,349 | $1,484 | $3,607 |
| 36 | $965 | $3,857 | $4,359 |
| 48 | $780 | $6,545 | $4,954 |
| 60 | $672 | $9,437 | $5,500 |
Of course, these aren’t the only timelines that you could commit to with $30,000 in debt. To price out more options, try WalletHub’s debt payoff calculator. This calculator can also help you decide if transferring the $30,000 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 $30,000 in debt. In fact, there are many options to consider, each suited for slightly different situations.
Ways to Pay Off $30,000 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 $30,000 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 $30,000 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 opt to pay 2.5% of the balance each month on a $30,000 credit card bill, it will take 658 months, or about 55 years, to pay off your balance. And, you'll pay $81,340.93 in total interest charges over that time, which is about 2.5 times the amount of your original balance.
How to get out of 30k credit card debt fast? ›
The 6-step method that helped this 34-year-old pay off $30,000 of credit card debt in 1 year
- Step 1: Survey the land. ...
- Step 2: Limit and leverage. ...
- Step 3: Automate your minimum payments. ...
- Step 4: Yes, you must pay extra and often. ...
- Step 5: Evaluate the plan often. ...
- Step 6: Ramp-up when you 're ready.
If you opt to pay 2.5% of the balance each month on a $30,000 credit card bill, it will take 658 months, or about 55 years, to pay off your balance. And, you'll pay $81,340.93 in total interest charges over that time, which is about 2.5 times the amount of your original balance.
How to pay off massive credit card debt? ›
Try the avalanche method
Make the minimum monthly payment on each, but throw all your extra cash at the highest interest debt. This is sometimes called the debt avalanche method of repayment — “avalanche,” because you're prioritizing taking down your most expensive debts in the long term first.
Is 30k in debt a lot? ›
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.
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 5 24 rule credit cards? ›
Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.
How to pay off $50,000 in debt in 2 years? ›
Tips for Paying Off $50,000 in Credit Card Debt
- Pay More Than the Minimum. ...
- Focus on High-Interest Debt First. ...
- Pay Off the Card With the Lowest Balance First. ...
- Review Your Expenses. ...
- Use Extra Cash to Pay Down Your Debt. ...
- Home Equity Loan. ...
- Personal Loan. ...
- Balance Transfer.
Here's the good news: You're not alone, and you have options you might not be aware of, including:
- Budgeting and following the debt snowball method or debt avalanche method.
- Consolidating your debt through a personal loan or credit card balance transfer.
- Implementing a debt management plan.
- Filing Chapter 7 bankruptcy.
Is National Debt Relief legit? National Debt Relief is an accredited member of the American Association for Debt Resolution (AADR). It has been around since 2009 and has helped over 600,000 individuals reduce their debt. It also has an A+ rating from the BBB (Better Business Bureau).
The general rule of thumb is that you shouldn't spend more than 10 percent of your take-home income on credit card debt.
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.
What is the best order to pay off credit card debt? ›
Avalanche method: pay highest APR card first
Pay that off and repeat, until you've reduced all of your credit card balances to zero.
How to get rid of $30k in credit card debt? ›
How to Get Rid of $30k in Credit Card Debt
- Make a list of all your credit card debts.
- Make a budget.
- Create a strategy to pay down debt.
- Pay more than your minimum payment whenever possible.
- Set goals and timeline for repayment.
- Consolidate your debt.
- Implement a debt management plan.
Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.
What is considered a bad amount of debt? ›
Most lenders say a DTI of 36% is acceptable, but they want to lend you money, so they're willing to cut some slack. Many financial advisors say a DTI higher than 35% means you have too much debt. Others stretch the boundaries up to the 49% mark.
Can I withdraw 30000 from credit card? ›
The Cash advance limit is a portion of the overall Credit limit, ranging from 20% to 40%. For instance, if your Credit limit is Rs 1,00,000 then you can withdraw between Rs 20,000 to Rs 40,000 as cash. The remaining balance can be used for Card transactions only.
How to pay off $20k in debt fast? ›
If you have $20,000 in credit card debt that you need to pay off in three years or less, you have multiple options to consider, including:
- Take advantage of a debt relief service.
- Consolidate your debt with a home equity loan.
- Take advantage of 0% balance transfer credit cards.
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.
