Should You Have More Than One Credit Card?

Many people have more than one credit cards; it is not uncommon for people to have several credit cards. This is partly due to the bombardment of credit card companies. This seems like easy credit. But users beware! The deathtrap is right around the corner.

If you don’t know how to manage your finance, in particular your credit cards, one credit card is bad enough, and several credit cards may swiftly put you into a never-ending credit card nightmare.

If you are waiting for the mail to deliver you an invitation to transfer your current credit card debt to a low introductory rate for a short period offered by another credit, you are already in hot water. After the low introductory rate – usually 2.9 to 4.9% APR (annual percentage rate) – for three to six months, you will be back square one – which is the existing high interest rate. Worse, with the temporary financial relief, you might spend more, ending up in a larger credit card debt. Don’t try to pay off one credit card debt with another credit card transfer – it is like robbing Peter to pay Paul.

Another worse scenario, you may resort to paying one credit card debt by charging it to one of the other credit cards that you have. You may do it by obtaining a cash advance, putting it into your checking account, and then using it to pay the other credit card.

Understandably, we are living in desperate economical times, and many people simply resort to any means just to survive, and getting into credit card debt is like getting into quicksand – it sucks you in deeper and deeper.

Use a debit card. Or simply spend less!

Use your Smart Credit Cards.

Stephen Lau

Smart Momey Management Resources