A colleague asked me how to proceed with his financial organization to stop using his credit card. He mentioned that he had around cards, that he had a very good relationship with the companies in question and that he had no intention of scrapping because he might need it at some point.
The question here is what if
When we decide to review our position on conscious use of credit one thing must be considered: focus and discipline. As much as you have a long relationship with companies, we are talking about your financial health. And it will depend on your discipline as to whether or not to use the card.
My suggestion in this case is
- Review the advantages and disadvantages that each card provides you. Do you have any loyalty plans to redeem for prizes? Do you pay annuities to have the cards? Is this card accepted at multiple merchants or restricted to the issuer?
- Evaluate the credit limits. Meet your needs? Are they within the range designed for your budget? Without the limit of this card, can compromise any specific plan? Could this limit be a risk to your financial health – in the event of a possible runaway?
About having multiple cards
If you are a disciplined person and have good financial planning (which follows correctly) I see no problems. If these features are out of your profile, it’s time to review things. Remember that sometimes focusing your spending on a single credit card can be even more beneficial.
Now, if your goal is really to stop using plastic and start a life with cash only, the remedy is unique, with a bitter taste at first, but yields long-term results. Break all the cards, pay the bills and wait for your cash flow to stabilize. The time to adjust your cash flow will depend on the number of invoices you will have to pay.