Should I Really Cut Up All of My Credit Cards?

Yes. I admit it, it's hard to part with them. However, with the average credit card carrying an interest rate of 18 percent or more, they need to go. If you only make a minimum payment on a $1,000 balance, it will take you twelve years to pay it off. Don't believe me? Take a look at your statement. It's now law that your credit card issuer disclose to you what you need to pay each month to payoff the card in three years and at the same time, how long it will take to pay off the card if you only make the minimum payment.

I know you are thinking, "I can't survive with out my credit cards." Having a credit card can be addictive, but if you are in debt, they need to go. You can do it. You don't necessarily need to close your cards, but leave them open. Closing your cards can hurt your credit score.
photo via (achildgrows)

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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