I'm having two credit cards with only 10% of worth credit limit available (Nearly full). I can pay off both cards with my savings and my savings would be zero or nearly zero.

I'm wondering whats the financial healthy way of doing this. Whether to maintain the credit balance by paying the interest and the minimum due or just pay off all debt and live empty hand for few months?

Also keep in mind, when making this decision, I can totally forget about the credit score matter of having a almost full credit card due to the country I'm living in right now.


1 Answer 1


Absolutely pay them off. Your interest gained on savings will (I am sure) fall well short of the interest owed on the cards. Therefore you are going backwards. The "savings" in this instance are actually not savings, they are costing you money in the form of card interest you could be avoiding.

If you need emergency money then you can always use your cards again. Just be careful. If you regularly start building up a card balance then you need to reassess your expenditure and start to cut back on a few things.

Personally I use my card for everything and pay it off in full every month. Lots of points and benefits + credit score (if I cared).

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