Is It Better to Pay off Credit Card Debt or Make Payments?

Is It Better to Pay off Credit Card Debt or Make Payments?

Credit card debt can feel like a burden. This burden leaves many people confused about the best method for managing their debt. One method is to pay off your credit card every month. The other method is to make payments for several months or years. Choosing the right method for you involves exploring how these methods work. Talk to a Tullahoma bankruptcy attorney if you have questions about bankruptcy.


When it comes to paying credit cards off each month, many people do this to prevent debt from building up. All credit cards have interest rates, a certain percentage of the total debt owed that is added to that total amount after each month. Many people work around having to pay any interest by paying off any money they spend on their credit card by the end of each month.

This is not always easy because this method requires paying off your credit card balance in full at the end of every month. If you do not use your credit card every month, this might be easier since this means that for some months, you would not have to pay any credit card balance.

Some people take this method further and pay off their credit card after every individual purchase. This might mean paying off money spent on gas with a credit card by the end of the week. You might be wondering what the point of using a credit card is with this method when debit cards are available. Unlike debit cards, paying off credit cards increases your credit score.

Others say the method of leaving a credit card balance each month can also increase your credit score. However, they do not say to do this blindly but with precision. They recommend always keeping a low credit card balance, even as low as five dollars. Interest will still build but much more slowly. This will build your credit score by showing you use your card more often which shows more recent activity with paying your credit.


Deciding which method to improve your credit score can be difficult. Paying off credit cards is not the only way to improve credit scores. You can also improve credit scores by keeping credit card accounts open, paying maxed-out cards first, and paying off loans.

Paying off credit cards is good but closing out unused credit cards may hinder your credit history. Opening several credit accounts simultaneously and different credit cards over time may not look as good as keeping old credit cards. Continuing to use the same credit cards lengthens your credit history and may improve your credit score.


You may not have to go through bankruptcy alone. Feel free to call us at Tom Bible Law by dialing (423) 690-7712 for a consultation today about your financial situation. Our experienced team of Tennessee bankruptcy lawyers can help you explore the various options for bankruptcy available. We can be found throughout the Tennessee cities of Chattanooga and Tullahoma.

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