Credit Cards-Friend or foe?

You must be careful accumulating credit cards. If you are disciplined to have a credit card that you will use for your monthly needs and pay it off every month, then you should acquire a credit card that will offer, “cash back” at the end of the year or travel miles. It is also advisable to have a credit card that you keep a small balance (operative word is small) on each month. As you pay on time each month it will demonstrate that you can manage your debt. It is also my opinion that you should acquire a few extra credit cards for emergency use only. The plasma television or the new Xbox is not an emergency. Needing your appendix removed is an emergency. If you have a medical insurance plan that requires a high deductible you should definitely acquire a few credit cards for this emergency. Once you receive the credit cards place them in your safety deposit box at your bank. The cards will be out of sight and out of mind!


When the credit cards are close by people have a tendency to use them. Their debt grows higher. But some don’t worry about their debt because they receive offers in the mail, which will consolidate their debt. One must be careful of the consolidation game. I recently received a promotion to consolidate my credit cards. On my initial review it looked great. I would not have to pay interest for the next year. It would save me a lot of money. But after my 2nd review of the promotional material I learned that if I were late paying this specific credit card or any other credit card (that’s right, I said any other credit card) my interest would begin immediately and at 21%. The lesson learned is to read the fine print.