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Racking up the credit cards

Racking up the credit cards

Are you collecting credit cards at the same rate the Kardashian women are collecting husbands? It might be time to consider a different hobby, one less embedded in steep debt.

There are a number of reasons why some people may have multiple credit cards, but having more than a number of credit cards can have its disadvantages. 

You pay more

If you have more than one credit card, you are usually paying annual fees for each card, meaning that you could be paying double or triple the amount in fees. Also depending on how many cards you have and what the outstanding balance is for each, you are being charged interest three times, on the balance of each card.

Lose control

Just by having more than one credit card it makes it harder for you to get your debt under control and pay it all off. Some people struggle to pay off one card let alone two or three.

Can affect your credit rating

Each time you apply for a new credit card, your credit file is marked. If you decide to apply for a loan such as a home loan in the near future, it could affect this.

However, the good news is there is still something you can do to get your credit card debt under control, even if you have multiple credit cards.


Consider consolidating your multiple credit cards and transferring the balances onto one card with a balance transfer. Balance transfer credit cards are a great way to focus on paying off your debt without paying a higher interest rate. They usually offer a low or no interest for a certain period, such as zero percent for six months. Compare balance transfer credit cards online and see how much you can save.

Pay down your debts

It may be necessary to set yourself a budget to work out how much you can afford to pay off your credit cards each month. Whether you decide to take out a balance transfer card, or not, work on paying off your card/s as soon as you can and save yourself in interest at the same time.

Pay more than the minimum

If you can’t pay off the total outstanding balance each month try to pay more than the minimum repayment required in order to pay it off sooner rather than later. Generally the minimum repayment is approximately 2 percent of the total balance, so if you only paid this each month it could take you years to pay off.

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