What Are the Main Challenges of Managing Multiple Credit Cards?

Depending on how many credit cards you concurrently carry and manage, one of the main challenges for many people is the process of keeping track of your accounts and their payments. If you have too many credit card accounts and too many statement due dates your financial situation can simply spiral out of control. For these consumers actively managing their debt and their accounts is definitely one of the main challenges associated with managing credit cards.

The More Cards the More Chaos

The more credit cards you have the easier it is to get confused about when your statement due dates are and what bills are owed on which day. The more credit cards you carry the more likely you’ll be disorganized in your personal finances. Carrying just two credit cards in your wallet is typically enough to do the job.

Solutions for Too Many Credit Cards

Is Credit Card Debt Consolidation a Good Idea to Help Reduce Your Card Count?

Credit card debt consolidation can be a good idea for some if you are saving money on interest payments. However, these options can tend to be a bit of a catch-22 since most consumers who would benefit from a consolidation loan typically won’t qualify for one (or if they do qualify then it’s usually a partial consolidation and doesn’t fully solve the problem). Anyone that would save money on interest could benefit.

Is a Personal Loan a Good Option for Credit Card Debt Consolidation?

A personal loan may not always be the best option for everyone, however consumers who save money on interest will see benefits. For many consumers, both personal loans and debt consolidation loans are simply moving the money around from one place to the other. However, consumers who are able to save money on interest and simplify their finances with one payment will see benefits.

How Does a Debt Management Plan Work?

Debt management plans help consumers reduce their interest rates via negotiations. However, their efficacy in saving consumers money and success rate can leave a lot to be desired. They do however provide one consolidated monthly payment so they will help in simplifying your finances.

How Long Does it Typically Take to Pay Off Multiple Credit Cards?

Like any new credit option, adding debt and opening up a line of credit will usually negatively impact the credit in the short term. However, in the long term if you are eliminating credit card debt and lowering your utilization it should positively impact your credit worthiness. This depends on the strategy you use, the balances you have and the number of accounts you have.

Ultimately, the decision is up to you the consumer to simplify your financial situation. There are many options available, but one thing is for sure. If you have too many credit cards you’re hurting yourself, not helping yourself.