When Do You Close Credit Card Accounts?

Narin has two cards with outstanding balances. Should he pay them off before he closes them or go ahead and close them now?

QUESTION: Narin on My Total Money Makeover has two cards with outstanding balances. Should he pay them off before he closes them or go ahead and close them now? Dave says the account remains open until the balance is paid off, but he can close them to further charges.

ANSWER: You can’t actually close the account completely until it’s paid off. You can close it to further charges. You can cut up the cards and do away with the use of them—all those kinds of things. The account remains open until the balance is paid. I do recommend you close it to further charges and that you shut down the continued abuse of the thing.

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