How To Manage Multiple Credit Cards Without Falling Into Debts

Kreg Bale
Kreg Bale October 4, 2020
Updated 2020/10/04 at 3:12 PM
Manage Multiple Credit Cards

Several people have learned one lesson or the other when it comes to how to manage multiple credit cards. They are striving to restrain themselves from this credit challenge as it is easy to be a victim and even tougher to escape from it. Also, the interest rate and other charges are factors that can influence your debts and get it into an amount that would be tough to get out of it.

However, one way by which consumers manage multiple credit cards is by eliminating the cards from their lives. This sounds great – because removing it would eradicate the temptation to spend. But this is not the best method of solving this problem because you are the culprit. So, rather than discipline yourself, you forego credit score by eliminating your multiple credit cards.

So, closing an account affects your credit rating which damages any future financial opportunity. The question now is, what can you do if you have multiple credit cards? Having many credit cards can be risky if only you don’t know how to manage multiple credit cards. The following tips are essential in managing multiple credit cards without falling into debts.

Manage Multiple Credit Cards
Manage Multiple Credit Cards

Define The Purpose For Every Card

It is good to categorize where to use each card. Engage the card where it is qualified to get rewards. You should know that there are credit cards that would give you fantastic discounts in restaurants or groceries while there are cards that are excellent for traveling. You must know how to manage multiple credit cards so that you can maximize the benefits accrued to these cards.

Budget The Card Usage

After defining the purpose of these cards, it should be integrated into your planning. For example, there should be a budget on the credit card designated for clothing every month. The same should go for food, groceries, and other important things. If credit cards are used for these expenses, a budget should be allotted to each one and separated. Discipline yourself not to spend the cash on something else.

Full Payment Of Balance Every Month

The tips are highlighted to be able to pay for your balance every month. With this, you are sure of staying away from financial charges and the corresponding effect of the high-interest rate. This is one way through which you can be prevented from falling into debt.

Decide How To Pay Off Your Debts

Credit card debts should be the first to be settled because they have higher interest rates than other forms of debt. Besides, the credit cards with the highest interest rate should get the priority when repaying.

So, you can make use of your list of debts to categorize your debts as you wish them to be paid off. Also, the debts with the least balance can be chosen to be settled first.

Let All Payment Be Done Promptly

Another way through which you can prevent falling into debts is by making all payments promptly and meeting the deadline of your credit card payments. Since you have several credit cards, it is often good if you have the due dates at the same time and after the release of a paycheck. This would not make you forget to make these payments.

Late payment for one missed payment can be up to $30 while a missed second payment within 6 months can be as high as $40 based on your credit card. However, when you miss payment consecutively two times, it can lead to a higher penalty fee and this would cause an increase in your monthly finance fee.

Carefully Tracking All Expenses

Besides, it’s a good thing to keep tabs on all expenses. Don’t wait for the statement of billing to come in before taking note of what is being spent. If you think this is cumbersome and tiring, you could search online for Smartphone apps that can easily assist you in tracking all your monthly expenses, for both credit and cash transactions.

Do Away With Credit Cards That Charge Annually

If you have cards that charge annually, try to waive them – or you better downgrade them into an account that does not charge an annual fee.

Therefore, it’s possible to own and manage multiple credit cards if you would stay organized. So, if you are not reckless and can take charge of where you use your credit, then the chances of falling into debts would be slim if not eradicated. 

Reasons You Should Have Multiple Credit Cards

If you desire categorizing all credit spending; making use of one card for all expenses could be difficult. However, having one card for separate expenses would make it easier for tracking all spending according to category.

It is good to know how to manage multiple credit cards if you cannot afford to bring down your credit score at the present moment. As it is said earlier, closing your credit cards imparts on your credit score – so, if you plan to take a heavy loan for business or getting a home, you might want to think again and reconsider not closing your cards

Having these credit cards would make you benefit from the reward point. So, if you can wholly maximize all the rewards for these multiple credit cards, then go-ahead to keep them. These rewards are beneficial in the long run as long as you can settle the full balance of your debts promptly. Doing this would make you only pay for the value of what you buy.

It’s good if you can manage all temptations. If you can curb your excesses making use of the credit cards for spending. This is one of the reasons you need to know how to manage multiple credit cards. Users who can’t curb their spending and cannot easily track their expenses would not benefit from multiple cards.

Therefore, when you alter or adjust your lifestyle, then you can fully enjoy and fully harness the benefits attached to having multiple credit cards; you do not need to discard them. 


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