So many Americans have trouble with credit card debt and the single largest reason for credit card debt is most often thought to be the fact that most Americans have four or more credit cards now. Those who are deep in doubt are often found to be those who have signed up for far too many credit cards in the first place. Simply put, it is difficult to keep track of your spending when there are so many different cards to choose from. The most important lesson that should be learned is the first and largest step to minimizing the risk of credit card debt is being very picky about which credit cards you sign up for.
It is important to point out that I am not saying credit cards are altogether bad, rather it is a good idea to have a great credit card or two that have terrific rewards programs and help you earn money back for your purchases. The problem is that there are so many different credit card offers out there that sound so attractive at the time that it can be hard to remember that you shouldn’t sign up for so many cards.
Marketers want to make it difficult to reject their credit card pitch, which is why you’ll often “save” so much if you sign-up for their card. While you may be able to get 10 or 20% off your initial purchase by constantly signing up for each of your favorite stores credit cards, you are taking the risk of losing much more in the long run.
Sit down and evaluate some of the best credit card options you have based on your spending habits and what kind of rewards you find the most attractive. Once you have done this you should be able to limit your credit card debt risk by having no more than two credit cards in that wallet or purse you carry with you every day.