How much does it cost to carry $5,000 in credit card debt?
Direct Answer
At the 2026 average credit-card APR of 24.3%, $5,000 in revolving debt costs roughly $100 a month in interest, about $1,215 a year. Paying only the minimum (typically 2%) takes more than 23 years and costs over $13,500 in total interest. Paying $250 per month clears the balance in about 26 months and costs around $1,460.
Cost scenarios
| Scenario | Cost | Notes |
|---|---|---|
| Minimum payment only (2%) | $13,500+ in interest | 23+ years to pay off |
| $150 / month | ~$3,400 in interest | ~57 months |
| $250 / month | ~$1,460 in interest | ~26 months |
| 0% balance transfer (21-month promo, 3% fee) | ~$150 (fee only) | If paid off before promo ends |
Why minimum payments are the trap
Minimum payments are calibrated so the lender keeps earning interest for as long as possible. On a 24% APR card, almost the entire first minimum payment goes to interest — under $10 actually reduces principal. That's why a $5,000 balance can take 20+ years to disappear with minimums.
Frequently Asked Questions
- What's the fastest legal way to kill the interest?
- A 0% balance-transfer card buys you 12–21 interest-free months. The transfer fee (typically 3%) plus zero APR is almost always cheaper than carrying the balance at 24%.
- Will paying it off hurt my credit score?
- No — utilization dropping from 50%+ to near 0% typically boosts your FICO by 20–60 points within one statement cycle. Closing the card after paying it off is what hurts.
Sources
- Consumer Credit Card Market Report , Consumer Financial Protection Bureau. Verified May 10, 2026.
Related quick-reads
- Quick answerHow long does it take to build credit from scratch?
- By the numbersCredit Card Debt Statistics (2026)
- 2026 rulesU.S. Credit Card Laws and Consumer Protections (2026)
- Should I…?Secured Card vs Student Card: Which Builds Credit Faster?
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