Latest Posts
Home > Ask The Get Out of Debt Experts > Should I Pay My Debt Off in Full Or Do It Monthly? – Dave

Should I Pay My Debt Off in Full Or Do It Monthly? – Dave

“Dear Steve,

I have $5000 credit card debt on one card with 11.9% APR. This debt has hovered around the 4500 to 5000 amount for about a year, as I have been paying off the minimum monthly payment each month, but have been hit with fees.

My question is: I just received a $5000 bonus from work. Is it best (at least for my credit score) to just pay off the credit card debt all at once, or is it better to pay off the debt with the bonus check gradually (say $1000 a month)?


Dear Dave,

If you have at least $2,000 in a savings account to use as an emergency fund then just pay off the debt. If you don’t have an emergency fund then use $3,000 to pay down the debt and put $2,000 in savings.

Whatever the minimum monthly payment is this month, make that each month till the rest of the debt is paid. Don’t get addicted to minimum payment crack. It is not designed to get you out of debt.

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.


I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.

  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.