How long would it take you to pay of this debt?

Question

About $7000 Credit Card. I don't eat out. And my rent and bills are about $700. I make about 1800 a month. How long you think this will take??

Answer 1

We pay our bills month to month.... It would take us month to month....@

Answer 2

You'll need to make a budget to find out. I suspect that you'll be paying on this for a while at an monthly income of $1800. If your rent is $700 then you need gas, food, phone, electricity and water. There are a whole host of questions to answer.

But, just a quick analysis, if you paid $200/month at a typical credit card rate of 26% APR then you could pay it off in around 66-68 months. I did this in Excel. A rule of thumb is take the debt and divide it by the maximum amount you can pay: $7,000/200 = 35. That would be if there were zero interest. For credit card Debt you should double this amount. Thus, 70 months.

If you paid in at $300 per month then it would be around half of that time. $7,000/$300 = 23 months. Double it because of the high interest rate = 46 months.

The first thing in being able to pay off credit card debt is to cut up your cards, close the accounts and make large payments each month. If you keep the card, you'll be too tempted to run it up again.

Good Luck.

Answer 3

First, put the card away. Don't cut it up or anything, just leave it locked away in your home.

Use cash from now on. Put yourself on an allowance. What does it cost you to live? In addition to the rent, there's phone, cable, water, heat, transportation, food, etc. Give yourself some cash for savings and then plug as much as you can on the credit card each month.

If you put at least $500 a month on the debt - and I would try for more - you'll probably pay it off in about a year and a half. (Allowing for interest charges to build that balance up some.)

Take a breath. You've got an expensive debt, but it's not crushing - YET. Attack it now and modify your life some and you'll not only clear this off, you'll be on a path to a better fiscal position. Just remember that while you're paying this off, to put some in a savings account. There is nothing so liberating as cash in the bank.

Answer 4

Well 700 from 1800 is 1100. Depending on what your interest rate is, 7 or 8 months.

Answer 5

Okay, lets say the interest on your credit card is 9.99%. Take 7,000 x .0999 (the interest) and you would get approximately $700 interest for the year. Then add 7,000 and 700 together and you get $7,700. Now divide $7,700 by 52 (number of weeks for the year) and you would get a little over 148. The 148 represents the number of months it will take to pay $7,000 with an interest rate of 9.99%. It will take you at least 12 years to pay it off if you do not add to your credit bill but you will still have to pay the interest charges for year 2 and year 3, etc.

Answer 6

1,000-spend/living expenses, 800 towards debt a month lets say you have 7 cards each has a finance charge of 15 a mo, that is 105 to interest and fees and 695 for principal on cards- it will take you one year, and say for two months in the middle you go on a vaca- with only 95 to prinicipal each mo you would have 1200 for a vaca(all work no play makes for a broken game plan every day) and it would take you 14 months and you would have a small payment on mo 14, if you put more towards a mo and spend less on a vaca you will get it paid quicker and those finance charges will drop as you pay too so it may take you as little as 10 mo or on a tightwad budget even less

Answer 7

Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 - 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.

Answer 8

If you check out www.crown.org, there are calculators that will help you make a plan for paying off the credit card. Sounds like you are on a good track...check it out. They're a great financial resource.

Answer 9

That leaves you $1100,...let's say u pay 800 a month..then u will be 10 months after interest (about) good !!! keep saving!!!! don't waist u money

Answer 10

you need to calculate in the interest rate, plus do you rent and bills include food/gas/car insurance/emergency money? I doubt it.

Answer 11

if you pay the whole 1100 you have left the it will take you about seven months.