How long to pay off £5,000 at £200/month?

At a typical UK credit card APR of 20%.

By · Updated · Methodology

Short answer

About 33 months (2.8 years), with roughly £1,600 of interest paid in total.

Faster options

  • £300/month: ~17 months (simple estimate).
  • £400/month: ~13 months.
  • 0% balance transfer: if you can shift to a 21-month 0% card with a 3% fee (£150), your current payment clears the balance in roughly 25 months with only the transfer fee as cost.

Calculator + guide

How the interest builds

At 20% APR, monthly interest on the current balance is roughly £83. Your first payment of £200 therefore goes roughly £83 to interest and £117 to principal. As the balance shrinks, more of each payment chips away at principal — the last few months of any payoff plan are the most efficient, which is why finishing strong matters.

If the rate is different

  • At 25% APR (store cards): interest is roughly 25% higher per month, adding ~7 more months to the payoff.
  • At 15% APR (preferential cards): roughly 25% less interest cost — total savings of ~£400 over the full payoff.
  • At 0% APR (balance transfer): the full £200/month goes to principal — balance clears in 25 months flat.

The minimum-payment trap

Most UK card issuers set the minimum at the larger of £5 or roughly 1% of balance + interest. On £5,000 at 20% APR, the minimum payment starts around £133 — and that minimum drops as the balance falls, dragging the payoff out for over 25 years with thousands of pounds in interest. Paying a fixed amount (like the £200 in this scenario) is the single biggest swing factor.

Impact on credit utilisation

Credit utilisation — the share of your credit limit you're using — is a major scoring factor. A £5,000 balance on a £10,000 limit is 50% utilisation; getting under 30% (£3,000 on this card) typically lifts your score within one or two reporting cycles. Paying down the balance faster therefore has a knock-on benefit beyond interest saved.

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