Why is paying down any debt aggressively so important?
Jackson Reed
Updated on February 18, 2026
According to Leslie Tayne, founder of Tayne Law Group, “The main advantage of paying off debt aggressively is that you’ll pay down the debt quicker and avoid accumulating extra interest in the long-term.”
Do mortgage lenders make you pay off debt?
A mortgage loan is one of the most affordable ways to borrow money. Mortgage rates are much lower than rates of credit cards, student loans and most other types of loans. A refinance allows you to pay off high-interest debt and convert it into a lower interest rate.
Is it bad to pay off all debt at once?
The answer in almost all cases is no. Paying off credit card debt as quickly as possible will save you money in interest but also help keep your credit in good shape.
Is it smart to pay off all debt at once?
Why do lenders like you to pay off loans?
Lenders do like people who’ve demonstrated that they can pay off loans, but mainly because it proves that they might be able to take bigger loans in future and generate more income for the lender. What lenders really want, above all else, is the interest [*].
What happens when you have a bad debt?
With the allowance method, you predict that you won’t receive payment for credit sales from all your customers. As a result, you debit bad debts expense and credit allowance for doubtful accounts. When there is a bad debt, you will credit accounts receivable and debit allowance for doubtful accounts.
What happens to your credit score when you pay off all your debts?
If your credit score gets a negligible hit after paying off the debts, then no need to worry about it. Like what? If your credit score drops from say, 800 to 780 points, it will not bother you when it comes to getting the best terms on credit.
Why do people want to pay off their debt?
They can’t afford to buy things because of the debt they have, so they use more debt to make purchases until they reach the end of their borrowing rope. Paying off your debt ends this vicious cycle and frees up your money to buy the things you really enjoy.
