Why You Shouldn’t Wait to Pay Off Credit Card Debt


Paying off debt is one of the best things you can do for your finances. Not only does it help you avoid late fees and interest charges, but also it allows you to build up savings for more important goals like retirement or a down payment on a home. However, many people think that they should wait until they have extra money before starting to pay off their credit card bills. But this is not always the best strategy: there are several reasons why paying off credit card debt as soon as possible can be beneficial!

Waiting to pay off debt could cost you your financial security

You might think that waiting to pay down debt is the responsible thing to do. If you have a mortgage or car loan and a credit card payment, for example, it seems logical that you’d want to make sure your mortgage payments are current before paying off the credit card debt. 

After all, if you default on your mortgage or car loan, then not only will those debts be unpaid but so will all of the other bills in your life—including the utilities, food and other necessities of daily living. 

However, if you don’t pay back a credit card company (even just one month) they may charge fees and even increase your interest rate. That’s bad news for anyone who wants their finances in order and to not have to delay life goals. 

Debt can be very expensive, and it is better to pay it off as soon as possible.

The cost of credit card debt can be very expensive. Interest rates for credit cards are typically higher than other forms of debt, like auto loans and student loans. If you have several credit card balances, it may be more economical to consolidate your debt into one loan with a lower interest rate. This will help you save money over the long term by having one lower interest payment each month and will allow you to pay down your loan faster. 

When you have multiple credit cards, it can be tempting to use the rewards program to spend more money than what is needed. This may seem like it will boost your credit score temporarily, but it will lead to more debt and interest charges in the long run. It is best if you only use your credit card for emergencies.

Paying down debt can help you qualify for a mortgage or car loan

If you have outstanding balances on your credit cards and close them before paying them off, then it could cost you big time when it comes time to apply for a mortgage or car loan. Why? 

Because those balances will show up on your credit report as “unpaid” accounts—and lenders frown upon those kinds of things!

When prospective homeowners submit their applications to lenders for mortgages, they’ll be scored based on their ability to repay the loan (i.e. FICO score). Lenders use this score as one indicator of whether or not someone is trustworthy enough to receive financing. If borrowers show any signs of riskiness by having too much debt relative to income—and they’re looking at opening new lines of credit—then they’ll get lower scores than those who are frugal with money and pay off debts each month without fail


Debt is something that can hold you back and destroy your financial future. The sooner you can pay off your debt and get back to living with financial security, the better! A great first step to paying off debt is to find ways to increase your income and reduce your expenses. Start by making a budget that includes all of your expenses, including those for housing, food, utilities, transportation, medical care, and insurance. Then see where you can reduce costs. 

If you’re struggling with $20,000 (or more) of debt, consider a debt relief program such as with American Credit Card Solutions (ACCS). We can help you find the best way to pay off your debt and get back on track with one affordable monthly program payment. Our IAPDA certified debt specialists are available to answer your questions and help you determine if you qualify for our program. Request your Custom Debt Relief Plan here.

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