Tell Your Friends About ArticleMap.com™ Sign-Up Free  |Member Login  

article marketing
ArticleMap.com

Home | Finance | Debt Consolidation


How Many Credit Cards Do You Need?

By: Steven J. Talrechi.

There is no right or wrong answer to how many credit cards you really need. Common sense dictates the fewer the better, that way you curb your appetite for credit. The problem is, common sense doesn't always reign supreme. How can it when this is the era of consumerism, of instant gratification? Some of us like to spend with complete abandon and there's nothing wrong with that. It can be argued that by spending, we fuel the economy.

Credit cards are both a blessing and a curse for consumers - here are some important facts:

Fact # 1: The average cardholder has 7 cards: three issued by their bank and four from stores or gas stations. (statistic from www.cardweb.com)

Fact # 2: 60% of U.S. households account for as much as 560 billion dollars in credit card debt. This breaks down to an average of $11,000 per household. (Testimony by Robert Manning to the U.S. Senate Judiciary Committee)

Fact # 3: Have you ever asked yourself why minimum payments are low? The answer is obvious. By asking consumers to make small minimum payments, they encourage the consumer to carry more debt. The lower the minimum payment, the larger the debt someone will owe. Who wins in the end?

Fact # 4: Here's one from Jim who's the principal blogger for a company called Blueprint for Financial Prosperity: you can actually lower the interest rate on your credit card by simply picking up the phone and asking for it. Jim says, credit card companies are like cell phone and cable companies, they're afraid you'll leave and join with one of their competitors. So, use this fact to your advantage and call your credit card company today if you're paying an arm and a leg on just the interest rate.

Fact # 5: There is a link between debt and depression. Studies (cited by Franklin Galvin, Secretary of the Commonwealth of Massachusetts) have shown that students who have over $1,000 in credit card debt have higher rates of drinking, smoking and are far more likely to be medicated for depression.

Just keep these facts in mind as you read on. Getting back to the question of how many credit cards you need, what is this magic number? As for us, we'd like to outlaw carrying more than two! Of course, this idea would never fly in our country.

No one can make you have only two cards. Your financial planner may scowl and your banker sigh, but they can't stop you from having as many as you'd like.

We suggest a deal - if you have more than two credit cards, why don't you take the extra (any more than two) cards and lock them up in a secure location. How about another proposition - Make more than the minimum payment each month. You want to eliminate your debt and this will speed things up.

Of course, the holidays are almost upon us and there is really no way around charging a little more than you'd like. Everyone does this, but how abut this as a New Years resolution once the holiday season is behind us: make yourself a promise that you will use your credit card no more than once a month. This requires a degree of discipline, but must be done if you want to get and stay out of debt. Think of it as an exercise regimen for your finances.

A few more figures for you: Americans charge 1.8 trillion dollars annually (yes, that is trillion with a t). 11% of U.S. cardholders pay interest rates exceeding 25%! These figures come from the U.S. General Accounting Office.

It is high time that Americans examined the way that they use credit cards and decided to be honest with themselves.

One of the greatest things you could have is freedom from debt. Just think about the figures we've given you in this article and we think you'll agree with us. Make getting out of debt your top priority for 2008.

We know that not every person is willing or able to limit themselves to only two credit cards. If you can keep on top of payments and keep your spending under control, then you can have all the cards you like. Another suggestion, if we may - don't take your cards with you when you go shopping. If you have to pay cash for your purchases, you'd be surprised what you can go without.

Patience is a virtue - wait to make those non-essential purchases until you can make them with cash. Don't be too surprised if you don't even want them anymore by the time you can pay cash. Best of all, you'll be helping to keep yourself out of debt.

Article Source: http://www.articlemap.com

Steven J. Talrechi has been writing about credit and credit practices for over a decade. He specializes in helping others with second chance banking and obtaining a checking account when they have been turned down by banks.



Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Debt Consolidation Articles Via RSS!

Additional Articles From - Home | Finance | Debt Consolidation
Sign Up Free | Learn More
Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Press Release
About Us
Link To Us
Contact Us
Privacy Policy
Terms of Service
Sponsored Ads:

Recommended Hosting

Related Sister Site:Health Article Directory
Submit Health Articles Now

Copyright © and All Rights Reserved.
Use of Our Service is subject to Terms of Service and Privacy Policy.



Powered by Article Dashboard