Archives
October 2022
AuthorJeff Venables is a Christ-follower, husband, father, high school chemistry teacher, Dave Ramsey certified financial coach, runner, and blogger. |
Back to Blog
How Many Credit Cards do I need?5/1/2021 As a financial coach, one of my top priorities is to help people eliminate and avoid debt. There is no "good debt." Credit cards, car loans, student loans, and even home mortgages, should all be paid off as quickly as possible. Once you pay off a credit card, cut it up and cancel the account. In fact, cut it up now, even if it is not paid off. You will never get it paid off if you keep using it. Remove it from your Apple Pay, Google Pay, or any other digital "Pay" app. The first step to getting out of debt is to stop accumulating debt. Don't borrow money. Don't use the credit card. Close the accounts. Don't open new ones. And then freeze your credit at TransUnion, Experian, and Equifax.
Is there a situation when you should have a credit card? Ideally, if you are out of debt and have a fully funded emergency fund, then there is no reason to have a credit card at all. But some people like to have one to swipe when they check into a hotel, for example (they will put a hold on a debit card that will freeze some of the money in your checking account). So, if you feel you must have one, then have one. But no more than one. Make sure it has no annual fee, and do not carry it in your wallet. Nobody needs that temptation. Some people like to purchase certain items (groceries, gas) with a credit card (for convenience or cash back rewards) and they pay it off every month. As long as you stick to a budget and remained disciplined, that is fine. But, it can be the beginning of a slippery slope, especially if you have a history of accumulating debt. So, my recommendation would be not to use it, ever. And when you are out of debt with a fully funded emergency fund, cancel all of the cards. You will be glad you did!
0 Comments
Read More
Your comment will be posted after it is approved.
Leave a Reply. |