I have my house deposit, which is pretty much exactly the amount of debt I am in.

If I pay off all my debt in one hit, will it look bad on my credit report, or if a bank looks at it and thinks a friend has helped me out?

Or should I pay it off monthly in fairly large sums?

  • Just pay it in one lump sum. Even if a friend gave you a gift/loan to help you get out of high interest debt, there's nothing wrong with that. – VBCPP Jun 6 '14 at 2:17

The three largest components that determine your credit score (at least in the U.S.A):

  • 35% of your score is based on your payment history
  • 30% is based on current debts
  • 15% is determined by credit history

Paying off your debt in one go will reduce the amount of time for which you owed the debt so it will help with current debts.

Additionally, why pay any interest when you have the ability to pay your bills?

Pay as soon as you can.


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