I have a $56K credit card debt and want to make my $22K bonus check count. How do I use it to pay off my debt faster?
Whether from student debt, excess spending or general hardship, many people find themselves facing massive amounts of credit card debt at or beyond midlife. It can catch up quickly and deeply impact your day-to-day life.
Imagine the example of Jordan. At 49 she’s received a bonus check from her sales commissions of $22,000 after taxes, but she also carries significant consumer debt — $56,000 combined on her three credit cards to be specific.
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To this point, roughly $2,000 went towards paying these (including interest), not leaving a ton of room in her budget for other expenses or to whittle down her debt faster.
However, Jordan is now hoping to put her $22,000 bonus towards reducing her debt. But she is wondering what else she can do to help her improve her financial situation.
And Jordan is not alone. According to Federal Reserve Bank of New York, credit card balances rose by $24 billion during the third quarter of 2025, totalling $1.23 trillion (1). That’s up by 5.75% from a year ago.
If you're hitting those credit limits and paying hundreds or thousands of dollars each month, chances are you'd love a better solution as well. And if you happen to come into extra cash, all the better.
Here are some options to consider along with your lump-sum payment.
Tackle high-interest debt by consolidating
Consolidating debt into one loan means one payment per month. This means a quicker and simpler payment than repeatedly paying multiple creditors. However, debt consolidation is only available to those with a minimum credit score.
If you qualify, consider making a down payment on this loan with any bonus cash you have.
This method can save hassle, time and even unnecessary interest. Additionally, for many, it's easier to remember to pay one bill on time than several.
And, of course, depending on the interest rate of current debts, a lower-interest loan may save you money in the long term.
Use one of these common debt repayment methods
The snowball method involves paying off your smallest debt first, then working your way up to the largest one. This comes after making your minimum monthly payments.
Once the smallest debt is paid off, move on to the next-smallest and then the next. This momentum is like building a snowball: your payments get bigger as you work up from your smallest to your largest debt. What's motivating for many is that sense of accomplishment as each debt disappears.
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