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September 2010 - How many credit cards you need to carry.

How many credit cards you need to carry.

☳ by Adam Aspilla

One of the major causes of financial problem is the uncontrolled use of credit cards. Credit cards give us the opportunities to buy items we do not need which is called “impulse buying”. Commercial advertisements are designed to impulse buy. If you read advertisements in the newspapers, you will notice when there is a sale it says like, “this offer is at very limited time.” It means you have to hurry and act now otherwise you will lose the opportunity to buy an item at a sale price.

Furthermore, when you watch commercial on TV it is also aimed for impulse buying. In the commercials they do not say, “first check your budget if you can afford it.”


A good example of impulse buying is when you pick up your photo at Wal-Mart or Costco when you get out you carry with you a canopy. Why it happens when you did not plan to buy it? It is the result of the impulse buying phenomenon.

 

How to resist from impulse buying, first you should have to make spending budget that should not exceed your earning, and to avoid carrying many credit cards. The question is how many credit cards you need to carry?

 

If you carry many credit cards, you will be tempted to use them. It is not easy to resist the temptation to  impulse buy if you have credit cards in your wallet. One credit card is enough. But, there are some establishments which accept only Visa, or only Mastercard, or only American Express. You may own three credit cards, a Visa, a Mastercard and an American Express. However, just carry one credit card at a time. Meaning, to avoid the temptation of impulse buying, you have to plan your purchase in advance and know what credit card the establishment where you make your purchase would accept.

Should you need to carry three credit cards, you have to be sure that you will only use them  on purchases you have in your spending plan (within your budget).

 

You may experience a pain in restricting yourself from buying items outside of your spending plan, but the pain, is much less than the pain you would experience when you are deeper in debts, where you are hounded by creditors and collection agents. In addition, it would take you years to get out debts plus your credit rating goes down the drain.

 

Knowing that the unwise use of credit cards is one of the major causes of financial trouble, carrying one credit card at a time would lessen the temptation of impulse buying.

 

 

Adam Aspilla is a Senior Financial Counselor of the Debt Clinic of Canada Inc. and the author of the book, You Can Negotiate All Your Debts. He also writes a biweekly column, “What Matters In Life” in “Taliba Newspaper. For free initial, professional and confidential consultation, please call 905-306-7572.