Too much plastic can be drastic?

Written by Administration | 30 June 2011

I can’t remember how I recently came across an article on a site called Lip Gloss Culture, either my wife sent it to me or I was looking for a foundation to match the green in my Debt Man suit. Regardless, it had some great tips and very good reasons to avoid having too many credit cards. 

When it comes to getting in over your head with credit cards, it's easier than you think.  The offers can be very tempting, you’re at the checkout counter of your favorite store with an arm load of clothes or electronics and they offer you a 10-15% discount if you sign up for their store credit card.  This is the same tactic casinos use when they offer you free drinks.  Nothing is free and the house always wins.  The stores know that while they will be giving you money today in the form of a discount, over time plus interest, you will more than pay their investment. That’s just the beginning of the damage that’s done to you and your finances.

I’ll sum up the long and the short of the article with some easy to follow bullet points but I highly recommend checking out the full article for a well-written look into why to avoid falling prey to the credit traps that are out there.

1.       Having too many cards makes it hard to keep up.  From rate changes, payment dates, and other tricks of the credit trade, there are a number of ways that not keeping up with too many cards can cost you big money.

2.       Having too many cards can lead you to spend more.  If you’re one of those people who write checks because you have some left in the checkbook, credit cards are not for you. Open lines of credit for you will be an open invitation to financial ruin.

3.       Having too many cards is bad for your credit.  Of course, so is having too many, small balances, big balances, paid cards, seriously, who understands this?  Maybe this is why my credit score and golf score are so close.

4.       Having too many cards means you are probably paying too much in fees.  Start up fees and more can really add up.  If you were to do the math on what you could be buying in cash for just what you’re spending to be a part of their little “club” it may not look so good.

5.       More cards means more chances for credit card fraud.  You’re probably thinking, “Isn’t saving us from that the job of the Debt Man?”  Help me out a little by looking after yourself please…

If you don't find yourself in over your head with debt reach out for help before it's too late!