Debt Consolidation Credit Counseling In Phoenix

Once your cards are paid off, it can be tempting to start charging again. But that's the worst possible thing you could do. There is some disagreement as to the best course of action. Here are the things you could do, along with their pros and cons.

*Some financial advisors say that if you keep your credit card but don't use them they can boost your credit scores. That may be the case. But an empty credit card lying around the house may be quite tempting.

This could also backfire if an identity thief gets his hands on your card number, because you might not detect fraud until it's too late if you're not inspecting your bills as closely as you did when you used the cards.

*If you are disciplined you could use the card every now and then to keep it active and boost your credit scores. But the temptation would really be there to keep spending until you reach the limit. Then you are back in debt and that is the last place you want to be.

*A less tempting option is to hold onto only your lowest rate credit card and close all the other ones out. This gives you something to fall back on in an emergency situation but you have all those other accounts tempting you to buy.

Even one credit card can get you in trouble if you are not in control. So avoid increased credit limits that give you that extra rope you need to hang yourself.

*If you don't trust your ability to control your spending it is best to close all your credit card accounts and not have access to credit. This may seem a bit extreme but it is better than going back into debt.

The latter should be a last resort because credit cards are helpful in building good credit. They can help improve your financial situation by helping you obtain low interest rate loans when you need them.