Q I have a Chase credit card with a $24,000 balance. About $12,000 has a promotional interest rate of 0.99 percent for the next 12 months. The other $12,000 has an interest rate of 6.99 percent. I recently received a letter telling me that Chase is raising the interest rate to 10.99 percent "in response to market conditions and to maintain profitability on your account."

Therefore $12,000 will stay at the promotional rate of 0.99 percent while the other $12,000 will get the new 10.99 percent rate unless I choose to close the account. Chase told me that it would keep the interest rate at 6.99 percent if I closed the account. Now I'm not sure which is the lesser of two evils. My credit limit is $28,000. Would your advice be to close the account and take a hit on my credit score or to just keep the account open and accept the higher interest rate?

My wife and I both work, so we are hoping to pay this card off quickly. My gut tells me to just close the account and take the hit to my credit score, but I am not aware how long this sort of move affects your credit score.

TORY, MINNEAPOLIS

A I'd go with your gut. I would close the account, keep the 6.99 percent rate and pay off the debt. Even though you and your wife are doing well, it's risky carrying a high balance in an economy that seems to be sinking deeper into recession almost every day. It's prudent to eliminate credit-card debt.

To be sure, closing the account will nick your credit score, at least for a while. But so what? Good savings and debt habits pay off in all economic and financial seasons, and being conservative with your household finances will pay off in a more secure lifestyle and a better credit score over time. What's good for the profits of the credit reporting and credit scoring industries is not necessarily good for your personal fiscal health. Not everyone agrees with me, and their personal finance advice is tailored toward manipulating credit scores higher. I don't agree. The goal should be to break the tyranny of the credit score.

Chris Farrell is economics editor for American Public Media's "Marketplace Money." Send questions to cfarrell@mpr.org.