How long does it take to pay off a credit card?
One of the main upsides of a credit card is that it can offer a handy, convenient way of borrowing a bit of cash when you need to - so you can spread a cost out over an affordable time.
However, one of the downsides of 'paying on plastic' is that credit cards can come with quite high interest rates. This means that not repaying your balance in full every month could lead to interest quickly accruing on your credit card - which could cost you a lot more in the long run.
You can read our guide to credit cards here.
But when it comes to repaying your credit card, you can do it as quickly or as slowly as you wish - as long as you're making at least your minimum repayments. However, if you have, say, £3,000 on your credit card and you're only making the minimum repayments, it would obviously take you a lot longer to clear than if you were 'overpaying' by £200 every month (paying £200 more than you actually had to).
Whatever your situation, it's important to find a repayment plan that works for you. Let's take a look at a few things you should think about.
How much can I afford to repay per month?
How long it takes to pay off a credit card debt is basically a question of how much you can afford to repay every month.
If you're only making the minimum required payments to your credit card every month, it won't just take you longer to pay it off - it could be a lot more costly too, since the interest will have longer to build up.
For some expert debt advice, click here.
However, you may feel that you're financially comfortable enough to 'overpay' your credit card every month, by freeing up some cash and putting this towards your credit card payments. You could even decide to pay it off all in one go, if you receive a windfall or you have some savings you could use.
Paying your credit card off sooner could save you a fair bit of money in interest, and give you one less debt to worry about. You could even decide to cancel your credit card altogether once you've repaid it, and try to avoid further borrowing in the future.
Again, it all depends on what approach you feel is best for you.
If you're not sure how best to tackle your debts, discussing your options with a professional debt adviser could help you.
Tags: credit cards, overpaying credit card, credit card, debt