A single late payment can have serious financial repercussions. Not only could you incur a late fee of up to $40, but your interest rates and promotional benefits might also be at risk. Even a missed payment on another loan can lead to higher credit card bills. Here are five compelling reasons to eliminate your credit card debt as soon as possible.

1. Credit Card Companies Can Change Terms with Little Notice

Credit card issuers have the power to modify almost any terms of your card with just a 15-day notice. While it’s common to see slight adjustments in interest rates, companies can also increase late payment fees or significantly raise your interest rate without justification. A single missed payment could lead to your low rate doubling or tripling overnight.

2. Increased Costs on Purchases After the Fact

Imagine purchasing a widescreen TV at a 9.9% APR, only to miss a payment months later. The credit card company can impose a late fee and hike your interest rate to 29.9% or higher, retroactively increasing the cost of your purchase. Unlike retailers, credit card companies can adjust your payment terms long after the sale.

3. Special Offers Depend on Timely Payments

Promotional offers, such as interest-free balance transfers, are contingent on your compliance with payment terms. Any minor oversight could result in the withdrawal of these offers and the imposition of penalty interest. To maintain your benefits, ensure all payments are made on time.

4. Other Missed Payments Can Affect Your Credit Card Rates

Your credit card companies monitor your overall credit behavior. Missing payments on loans—like mortgages or car payments—can lead to a reassessment of your credit score, resulting in increased rates on your credit cards. Even if you’re diligent about card payments, a missed loan payment could spike your interest rates by two or three times.

5. Credit Card Companies Profit from Your Debt

Credit card companies are making record profits, especially from those who carry a balance. If you don’t pay off your cards in full each month, you’re effectively allowing them to profit from high-interest rates and additional fees. It’s unwise to keep money in the bank earning minimal interest while paying exorbitant rates on credit card debt. Prioritize paying off your balances and use cards only for emergencies.

Don’t let credit card companies take advantage of your financial situation. If you can pay off your balance within 3 to 6 months, do it. Otherwise, consider a consolidation loan to free yourself from the debt cycle.