How to pay off $15,000 in credit card debt (2024)

We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.

MoneyWatch: Managing Your Money
How to pay off $15,000 in credit card debt (2)

Credit card debt is nothing new in the United States. Balances across the country are growing at a brisk pace, totalling $1.03 trillion according to the Federal Reserve Bank of New York. Then again, once you have your fair share, you'll likely wish you were never introduced to these all too easy to slide pieces of plastic.

You've decided you're done. You're ready to say goodbye to credit card debt for good.

That's great news, but there's one problem. High interest rates make it difficult to pay these revolving debts off. As such, minimum payments seem like nothing more than a forever debt trap. So, what do you do if you have five digits in credit card debt and need to get rid of it fast?

Get out of debt fast with a debt relief program today.

4 ways to pay off $15,000 in credit card debt fast

Sure, $15,000 in credit card debt can be intimidating, but it's not the end of the world. The fact is that with the right plan and a bit of discipline, your debt can be behind you before you know it. Here are four ways you can pay off $15,000 in credit card debt quickly.

Take advantage of debt relief programs

If you're having a hard time making your monthly minimum payments and your debts seem to be at a standstill, it's likely time to reach out to a debt relief program. Debt relief companies are skilled at ensuring that you pay the lowest interest rate possible and build payment plans that fit well within your budget. When you sign up, you'll generally take part in one of three programs:

  • Debt consolidation loan: Debt consolidation loans are personal loans issued for the purpose of paying off high-interest debt. They not only reduce your overall interest, they offer a fixed payment plan and clear path to payoff.
  • Debt consolidation program: With debt consolidation programs, professionals negotiate your interest rates on your behalf. You'll make a single payment to the program and they disburse that payment to your creditors.
  • Debt settlement program: Debt settlement involves negotiating your principal balance on your credit cards. This alleviates the pain associated with interest rates and greatly reduces the amount of money you owe.

Get the debt relief you deserve now.

Use a home equity loan to cut the cost of interest

"Similar to a debt consolidation loan," says Shane Cummings, CFP, CEPA, AIF, Wealth Advisor and the Director of Technology/Cybersecurity at Halbert Hargrove, home equity loans allow you to "borrow at a lower interest rate to pay off higher interest rate loans."

This is a compelling option for dealing with high-interest credit card debt.

"For example, you have credit card debt at 20% that is incurring interest faster than it can be paid off and you can borrow against home equity at a lower rate," says Shane, "that would provide an opportunity for you to incur less in interest charges and pay that debt down faster."

Use a 401k loan

Your 401k may be your key to debt relief as well. That is, as long as you've built up enough value in it. In most cases, you can borrow up to the lesser of 50% of your 401k's value or $50,000, which you could then use to pay off your credit card debt.

"The interest rate on the 401k loan would typically be significantly lower than credit card interest rates," says Brian Martin, Wealth Manager at Merit Financial Advisors. "Plus, you would have a built-in payoff plan through your payroll and be paying yourself back with interest."

So, not only can a 401k loan help you consolidate your debts and reduce your payments, it could be beneficial for your retirement in the long run.

Take advantage of balance transfer credit cards with promotional interest rates

"Consider consolidating multiple credit card debts into one that has the lowest interest expense," explains Martin. You could also transfer balances to "a new credit card if a better short-term interest rate is available."

He went on to explain that "credit card interest expenses can be a huge detriment to how far your monthly dollars can go." So, it's best to "try to minimize this expense where you can."

Balance transfer credit cards are often an effective way to do that. Many of them come with low or no interest for a year or longer. Though, once the promotional period expires, you will be charged the standard interest rate for the card on any remaining debt. So, it's best to pay the debt off during the promotional period.

If you're unable to do so, be sure you know what the standard rate for the card is and have a plan for addressing your debts once the promotional period expires.

The bottom line

$15,000 can be an intimidating total when you see it on credit card statements, but you don't have to be in debt forever. If you're struggling to make your minimum payments every month and you don't see light at the end of the tunnel, sign up for a debt management program to get out of debt fast.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he's not working, he enjoys time with his wife, two kids, two dogs and two ducks.

How to pay off $15,000 in credit card debt (2024)


How long will it take to pay off a 15000 credit card? ›

It will take 32 months to pay off $15,000 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.

How can I pay off $15000 fast? ›

How to Pay Off $15,000 in Credit Card Debt
  1. Create a Budget. ...
  2. Debt Management Program. ...
  3. DIY (Do It Yourself) Payment Plans. ...
  4. Debt Consolidation Loan. ...
  5. Consider a Balance Transfer. ...
  6. Debt Settlement. ...
  7. Lifestyle Changes to Pay Off Credit Card Debt. ...
  8. Consider Professional Debt Relief Help.
Feb 9, 2024

Is 15000 a lot of credit card debt? ›

$15,000 can be an intimidating total when you see it on credit card statements, but you don't have to be in debt forever. If you're struggling to make your minimum payments every month and you don't see light at the end of the tunnel, sign up for a debt management program to get out of debt fast.

What are 3 ways to pay off credit card debt fast? ›

  1. Using a balance transfer credit card. ...
  2. Consolidating debt with a personal loan. ...
  3. Borrowing money from family or friends. ...
  4. Paying off high-interest debt first. ...
  5. Paying off the smallest balance first. ...
  6. Bottom line.
Feb 9, 2024

What is the 15 3 credit card payment trick? ›

By making a credit card payment 15 days before your payment due date—and again three days before—you're able to reduce your balances and show a lower credit utilization ratio before your billing cycle ends. That information is reported to the credit bureaus.

Is 15000 a high credit card limit? ›

But if you need to transfer $11,000 of credit card debt, that "good" limit isn't quite good enough. This is a problem common to many people with small business credit cards. A $15,000 credit limit is objectively good.

How do I pay off $15 K in debt? ›

To pay off $15,000 in credit card debt within 36 months, you will need to pay $543 per month, assuming an APR of 18%. You would incur $4,558 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 do I pay off debt when I live paycheck to paycheck? ›

Tips for Getting Out of Debt When You're Living Paycheck to Paycheck
  1. Tip #1: Don't wait. ...
  2. Tip #2: Pay close attention to your budget. ...
  3. Tip #3: Increase your income. ...
  4. Tip #4: Start an emergency fund – even if it's just pennies. ...
  5. Tip #5: Be patient.

What is the best method for paying off credit card debt? ›

If you want to get out of debt as quickly as possible, list your debts from the highest interest rate to the lowest. Make the minimum monthly payment on each, but throw all your extra cash at the highest interest debt.

What is considered really bad credit card debt? ›

If your total balance is more than 30% of the total credit limit, you may be in too much debt. Some experts consider it best to keep credit utilization between 1% and 10%, while anything between 11% and 30% is typically considered good.

What is considered a high credit debt? ›

Anything over 30% credit utilization will decrease your credit score. So, you can use this as a measure of when you have too much debt. Consolidated Credit offers a free credit card debt worksheet that makes it easy to total up your current balances and total credit limit.

What is the record high credit card debt? ›

Americans' credit card balances climbed to a new record high $1.13 trillion, according to data released Tuesday by the Federal Reserve Bank of New York. Credit card debt increased by $50 billion in the fourth quarter of 2023 alone, a 4.6% jump from the previous quarter.

How can I pay off my credit card debt if I have no money? ›

Apply for a debt consolidation loan.

Debt consolidation allows you to convert multiple debts, commonly several credit card balances, into a single loan. That can make repayment simpler, and can help you budget since you'll be required to make a fixed payment toward the loan each month.

How do I pay off my credit card ASAP? ›

Try the snowball method

With the snowball method, you pay off the card with the smallest balance first. Once you've repaid the balance in full, you take the money you were paying for that debt and use it to help pay down the next smallest balance.

What is the fastest way to get out of credit card debt? ›

Strategies to help pay off credit card debt fast
  1. Review and revise your budget. ...
  2. Make more than the minimum payment each month. ...
  3. Target one debt at a time. ...
  4. Consolidate credit card debt. ...
  5. Contact your credit card provider.

How long does it take to pay off 10k credit card debt? ›

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.

How fast can I pay off 10k in credit card debt? ›

If you want to pay off debt more quickly, you'll need to make extra credit card payments and pay above the minimum. Let's say you had that same $10,000 credit card debt at 18% interest mentioned above, and you made a $350 payment every month until it was paid off. In that case, you'd be free of your debt in 38 months.

What is the minimum payment on a $10000 credit card? ›

If you only make minimum payments, a $10,000 credit card balance will cost you $16,056.59 in interest and take 346 months to pay off. Minimum payments on a $10,000 balance would start at $267 and decrease as you paid down what you owe.

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.

Top Articles
Latest Posts
Article information

Author: Sen. Ignacio Ratke

Last Updated:

Views: 5882

Rating: 4.6 / 5 (56 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Sen. Ignacio Ratke

Birthday: 1999-05-27

Address: Apt. 171 8116 Bailey Via, Roberthaven, GA 58289

Phone: +2585395768220

Job: Lead Liaison

Hobby: Lockpicking, LARPing, Lego building, Lapidary, Macrame, Book restoration, Bodybuilding

Introduction: My name is Sen. Ignacio Ratke, I am a adventurous, zealous, outstanding, agreeable, precious, excited, gifted person who loves writing and wants to share my knowledge and understanding with you.