Too many credit cards... Help

[02TrueBlu]

OK, i have WAY too many credit cards (4) and all of them have pretty high balances. What is my best way to go? Should I consolidate all of them onto one? I obviously am not very good at managing what I have and I am needing to go in a different direction with this. Thanks in advance

[veronak]

I had a total of 9 and I did the debt snowball, tackling from smallest to largest (balances). Then I closed the one that had the highest interest rate and annual fee (this hurt my credit but I do not care, no point in paying to have a credit card) I would not consolidate only four cards, but you must stop using them ASAP good luck

[usnavy_233]

At least you've recongized that you have an issue with spending. That's the first step. Good for you.

I would look at the balances and interest rates on each card and decide which one will save you the most by paying off first. Then, lock down on your spending so you can commit every extra dollar to the balance of this card. When this card is paid off, take all that money you were putting on it and apply it to the next most expensive card. Continue this process until all four are paid off. I assume this is the "debt snowball" that I've heard so many people talk about. I call it the "power payment" plan but it's all the same idea. Then, close the 3 newest cards (or the ones with the highest interest rate) and keep 1 for emergencies (REAL emergencies, not those "wow, I really like that..." kind of emergencies).

Good luck!

[creditcardfree]

I wouldn't consolidate them necessarily, but I would be on the lookout for better interest rates...or call the cc company to ask for a lower rate. Tell the cc company that you have a lower offer in the mail and see if they'll match that. Don't you get cc offers all the time? If they won't match...move the money to a lower rate card.

While you are looking for lower rates and have stopped using the cards, you need to start paying them off. Start with the smallest balance first. Add any extra money you have to that one, while paying minimums on the others. You will feel so great about getting that first one out of the way...you'll be motivated to get the others knocked as well.

Any questions let us know. You can do this.

[Ima saver]

I agree, you need to put the cards away and quit using them. cut them all up but one and start to pay off one at a time.

[PRICEPLUS]

The cards as everyone has said must be put away. I would set up a payment snowball. You must not use those cards! It will be hard but there are many here who are in the same boat as you and they are making headway against their debt. Make your goals and go! You can do it!

[bigsaver]

You probably shouldn't be using credit cards. I wouldn't recommend that you cancel them either. You are better off just cutting them up and thus not having them around to use. The only reason I use a credit card is for gas and groceries as I get back 5% from citibank, otherwise, I really don't use credit cards