Friday, September 19, 2008

How Many Credit Cards Do You Need?

There is no right or wrong answer to this question. But it's safe to say is that you should be as little as possible. Everyone knows how easy it is to reflect on and get into a serious debt. Common sense tells us not to over our heads - but the sense is not often the people who make decisions, especially with regard to credit cards. Americans are used to immediate gratification and are encouraged to make purchases. There is nothing wrong with shopping, per se, but credit card debt can quickly get out of control, how many Americans know too well.

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

Fact # 1: Each card has an average of 7 Credit cards: three bank credit cards and four stores or gas cards (John Gibbons ABC News Online, referring to statistics

Fact # 2: Three out of five American households is about 560 billion U.S. dollars of unpaid credit card debt. Credit card debt on average more than $ 11000 per household. (2001 testimony of Robert Manning in the U.S. Senate Judiciary Committee, as quoted by Mara Jian Selena, Motley Fool).

Fact # 3: Minimum payments low - why? If only small monthly payments cards are accepted, consumers in arrears for more next month - and that means more revenue from interest payments on the credit card. Ask yourself: is better in the low minimum payments?

Fact # 4: Leading blog Jim Blueprint for Financial Prosperity gives us this sense. Company credit cards, such as telephone or cable, you want to prevent competition. If you are interested in them for interest payments, which in your opinion, are too high, they almost certainly will, in cooperation with you. With the appointment, you will be surprised that they are forced to do for you.

Fact # 5: There is a link between debt and depression. Studies (quoted by Franklin Galvin, Secretary General of the Commonwealth of Massachusetts), showed that the pupils who have more than $ 1000 in credit card debt have a higher drinking, smoking and have a lot more opportunities, pharmaceuticals depression.

Just keep these facts in mind as you read. To return to the question of how many credit cards you need, what is the magic number? As for us, we want to outlaw the transport of more than two! Of course, this idea would never fly in our country.

Of course nobody can say how many credit cards can or should be. Your Financial Planner or banker May scowl, but they can not abandon them.

If we offer something - if you have more than two cards, why not block the cards in a safe place to keep temptation in Bay? Another idea - If your statement happens every month to pay more than the minimum. Finally, the idea is to get out of debt, and this makes things faster.

Christmas is almost here. You can use your credit card to any question you want. This time of year when all uses credit cards without restrictions or think twice after the holidays, we are still in the currency crisis. But for a little favor. For your New Year's resolution on how to promise not to use your credit card more than once a month? This is tantamount to imposing a military-like discipline, but here, all agree that uncontrolled credit can be compared to poisonous cobra venom.

Two other facts for you: U.S. map at the expense of the more than 1.8 trillion U.S. dollars annually. 1.8 trillion U.S. dollars - just think of this number for a minute. 11% of American cards to pay interest rates of over 25%! Both figures are for us the U.S. GAO (General Accounting Office).

It is time for us all hard to see how we use credit cards. Maybe this could lead to changes in how we spend.

In assessing the debt of many Americans, a better freedom, we can free of debt. Imagine life on a daily basis for loans and hardly in a position to these large monthly payments. Do you have zero debt, then of course proud! Why not have zero debt that your № 1 priority for 2008?

We know that everyone wants, or is likely to be limited, but only two credit cards. If you continue to receive payments and keep their costs under control, then you can have all the cards you want. Another proposal if we can - not to your card with you when you go shopping. If you have to pay money for the purchase, you will be surprised that you can spend.

Patience is in force - the purchase unnecessary to wait until you can earn money. Do not be surprised if you do not want even more, if you can pay in cash. Even better, help you in further debt.

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