The main reasons to clear credit card debt quickly
Last updated: 6 Aug 2025
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Credit cards provide convenience in everyday spending, but at the same time, they're a financial tool that can easily lead to debt. If we don't use them effectively, debt can accumulate quickly and continue to accumulate. We might initially pay off our debt in full, but then only pay the minimum amount. Worse, we might even default on our loans, which can significantly impact our financial history. Clearing credit card debt quickly is crucial. This is why it's important to clear it as soon as possible before any other debt.
High Interest Rates
Credit card debt carries extremely high interest rates, as high as 16% per year, and personal loan interest rates as high as 25% per year. If payments aren't made within the specified timeframe, the balance will continue to grow, forcing us to pay both principal and interest, creating a never-ending financial burden.
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Clear Your Debt
The danger of credit card debt is that we think we can pay the minimum amount and enjoy a 0% interest rate, when in reality, this isn't the case. Credit card debt involves compounding interest and numerous hidden risks. If we don't pay off our credit cards quickly, we'll have to pay off our debts. Debt will accumulate and increase, and may even exceed the repayment limit, making financial management even more difficult.
Reduce Risk and Financial Burden
Clearing debt quickly will help reduce financial burdens and potential financial risks, such as living paycheck to paycheck, and credit scores that will affect future borrowing.
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Maintain Your Credit History
If you have a large debt burden and cannot pay it all at once, paying your debts on time will help maintain your credit history and maintain good credit standing. Defaulting on payments will affect many financial transactions and loan applications.
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Increase Savings
If you can quickly clear all your credit card debt, not only will you reduce interest payments, but it will also help you save money and plan your finances to achieve your goals.
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Prevent Credit Card Suspension
Those who frequently use multiple credit cards and frequently max out their credit limits may request temporary credit limit increases, which can lead to further increases. When it's time to pay, they may not be able to pay on time, leading to credit card suspension. If we can quickly clear our debt, we'll avoid having our credit cards suspended and won't have an impact on our credit.
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Clearing credit card debt quickly will improve our long-term financial health and mental health, as we'll be less stressed or anxious about finding the money to pay off our debts on time each month. For tips on saving money or managing debt that's right for you, read more from the Credit Bureau's articles.
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Source: NCB ขอบคุณข้อมูลดีๆ จาก REIC
High Interest Rates
Credit card debt carries extremely high interest rates, as high as 16% per year, and personal loan interest rates as high as 25% per year. If payments aren't made within the specified timeframe, the balance will continue to grow, forcing us to pay both principal and interest, creating a never-ending financial burden.
___________________________________________
Clear Your Debt
The danger of credit card debt is that we think we can pay the minimum amount and enjoy a 0% interest rate, when in reality, this isn't the case. Credit card debt involves compounding interest and numerous hidden risks. If we don't pay off our credit cards quickly, we'll have to pay off our debts. Debt will accumulate and increase, and may even exceed the repayment limit, making financial management even more difficult.
Reduce Risk and Financial Burden
Clearing debt quickly will help reduce financial burdens and potential financial risks, such as living paycheck to paycheck, and credit scores that will affect future borrowing.
___________________________________________
Maintain Your Credit History
If you have a large debt burden and cannot pay it all at once, paying your debts on time will help maintain your credit history and maintain good credit standing. Defaulting on payments will affect many financial transactions and loan applications.
_________________________________________________
Increase Savings
If you can quickly clear all your credit card debt, not only will you reduce interest payments, but it will also help you save money and plan your finances to achieve your goals.
_________________________________________________
Prevent Credit Card Suspension
Those who frequently use multiple credit cards and frequently max out their credit limits may request temporary credit limit increases, which can lead to further increases. When it's time to pay, they may not be able to pay on time, leading to credit card suspension. If we can quickly clear our debt, we'll avoid having our credit cards suspended and won't have an impact on our credit.
___________________________________________
Clearing credit card debt quickly will improve our long-term financial health and mental health, as we'll be less stressed or anxious about finding the money to pay off our debts on time each month. For tips on saving money or managing debt that's right for you, read more from the Credit Bureau's articles.
___________________________________________
Source: NCB ขอบคุณข้อมูลดีๆ จาก REIC
