Downfalls Of Having Multiple Credit Cards
You can’t seem to avoid them at all nowadays. Credit cards are everywhere, whether you are shopping in your local supermarket or at the train station, it has never been easier to apply for one. This may be why so many of us have not just one credit card, but so many of the plastic things that often it’s easy to forget just how many you have.
We all need to be very careful with these plastic comforts as by having more than one you could easily become very disorganised and forget what you have, with which company and how much your credit limit is. This would be a dream for credit card companies as they strive on making money from those consumers who make late payments, go over the agreed credit limit as these are some of the ways they make money from us.
Let’s think about this some more. In reality if you have say more than four credit cards how are you going to manage them all especially if you routinely use all of them. One credit card statement may be due at the beginning of the month, another in the middle and the other at the end so how are you going to remember all of this. Despite a reminder by the statement arriving at your door step, this could all be a bit of a mess if you forget. Just having a week away in the sun could confuse things, so keep this mind if you want to avoid extra unnecessary payments.
What about how much you can spend on each credit card? You might have £1000 credit limit on one card, £1300 on another and other limits on your other cards. Many credit cards will allow you to spend over your limit, only to find out when you next receive your statement you have been charged for this privilege! Keeping track of how much you have spent on each card can be nightmare unless you keep some sort of log or regularly call up the card companies to get an up to date balance.
It can be very easy to put purchases onto a card and not to worry about it at the time. It can be very tempting to do this but many consumers fail to realise just how much debt they are getting themselves into. By having more than one card it can be even easier to fall into the trap of spending and get you into debt without even realising.
Please visit Credit Card UK for more information.
Tags: credit cards, credit limit
