One of the main reasons why we got into so much debt is credit cards. The appeal lies in the fact that you can purchase products and avail of various services even if you have no money to pay for it.
One of the reasons why you should only own one credit card is to curb that bad spending habit. You need to learn how to spend only what you can afford to pay for in cash – at the moment. Develop the attitude of using your credit card only when you know that you have the actual cash on hand to pay for the purchase as soon as the credit card bill comes in. It doesn’t have to be with you at the moment. It can be in your savings account. If you want to use it for major purchases, look for ones with a 0% promo. That will help minimize your payments.
Another reason why you only need one credit card is the fact that we are notorious for maxing it out. If you know that you cannot control this attitude, then it is best to limit the debt by having only one card.
The debt that you acquire from these cards are also notorious for being one of the hardest to get out of. It has high interest rates that can result in the fast accumulation of your debt. The late penalty charges are also quite high. They also have finance charges that all contribute to the high increase of your debt month on month.
Not only that, the minimum payment requirement provides consumers with the delusion of paying off their debts. While it does keep you from having a bad record, it will also keep you in your credit card debt for a long time. If you know that you cannot afford to pay more than the minimum, make sure that you do not acquire too much debt. One of the ways to keep that from happening is to limit the credit card that you own.
Some people think that credit cards provide financial security in case of emergencies. While they can certainly help, consumers are actually digging a bigger hole to sink into. Instead of relying on them, save your cash instead. It is really more liberating to purchase things this way.
In the end, owning one credit card and managing the payment properly will help your credit score already. You don’t have to own more than one to do that.
If you own more than one card now, pay them off slowly or go for debt relief programs that will make it easier. When your credit score is high enough to handle the negative impact of closing accounts, cancel some of your cards. After all, you can easily build up your score with only one card to concentrate on.
Credit cards are generally seen as belonging to the elite class and therefore the middle class and below category avoid getting into debts and unnecessary deductions every month so opt for debit cards. For more information in this matter, just visit the site, Cvv Shop, which will tell you all you need to know and help you in choosing as per your convenience.