Money & Credit Management

 How many credit cards does the average consumer need?

• Is it better to use as many credit cards as you can get?
• Can the number of credit cards you own affect your credit history?

Two or three credit cards is enough for the average family. The total outstanding balance is one of the primary things credit card companies pay attention to and you should work to keep your balance between 25% and 50% of the available credit on each credit card.  If you exceed your balance potential creditors are going to deny your request for credit. Occasionally, circumstances do occur requiring balances to creep higher than we like. Maintaining a consistent history of paying those balances down will also help keep your overall credit rating high.  A good credit history is important to your overall financial future. 

Before applying for one more credit card, keep in mind, the more credit cards you own, the harder it is to keep control of your balance.  Work at maintaining credit cards with low interest rates.  If your credit card company will not lower their rate, it may be time to look at your options.  CreditCards.com  can help.

A consistently strong credit history will lead to better lending rates when you really need it.  Be aware of your credit rating.  Equifax can help.  Something may have negatively impacted your credit rating in error.  You don't want to find this out when you are applying for a mortgage or automobile loan. 

Budgeting Is a Good Thing (even if it sounds bad)

When you think of a budget, do you think of a meticulous number crunching and a life void of things you like to do and other "expensive" ways of having fun?  Put all these negative thoughts about budgeting out of your mind.

A budget will relieve much of the financial stress from your life.  No more worrying about if you have enough money to pay your bills or finding out you don't have enough money when it comes time to pay them.  A budget will help you know the answer to that question upfront.  If you need to figure out where to cut back, a budget will help you pinpoint the exact way to cut back.  Get started by listing out your expenses as you think of them over a few days.

Why is a budget so important for managing debt?

You could successfully get out of debt without a budget. However, working out a budget will make getting out of debt easier.

A budget will help you figure out exactly how much you can afford to spend to get out of debt.  Not only that, it helps you figure out where to squeeze more money to apply to your debt.

Once your debt's paid off, a budget will help you keep your finances on track to keep you from getting back into debt.  A budget will help keep your spending under control so you don't have to rely on debt to make ends meet.