Credit card debt is rising in America. In fact, a report from LendingTree found that US consumers carry $925 billion in credit card debt as of the third quarter of 2022, which is up $38 billion since the beginning of the year.
Paying off debt is an important financial step most Americans know they need to take, but figuring out how to do it is where most people struggle. But if you have money in savings, you may be wondering whether you should use it to shrink your card balances. The answer to this question isn’t a simple yes or no.
You must carefully consider several factors to determine when to use savings and how much of it to tap into when it comes to paying off credit card balances.
Since this can be a complicated journey, let’s take a look at when it makes sense to use savings to pay off debt so you can make a smart financial decision as you work toward becoming debt free.
