Balancing your credit cards

17 December 2007

There are many consumers who apply for a second credit card. This is usually, in the majority of cases, a low interest credit card that people use for emergencies when they have an unexpected bill or need to make a payment on their main credit card but wont get their paycheque until after the due date.

A second, low interest credit card is obviously a good idea if you can manage your finances and return the amount of credit you draw on as soon as you are financial.

However, you can find yourself in financial difficulty if you begin to just make the minimum monthly repayment or even skip repayments on your second credit card.

Ed Mitchell is a former television presenter in the UK who was earning £100,000-a-year.

Now Ed was juggling the repayments on 25 credit cards with the interest costing him £4,000 a month.

Eventually he would have to declare himself bankrupt.

You can certainly save money by juggling your finances, making the most of some very good credit card features, if they suit your financial situation is relatively easy to do.

Just be aware that having a second credit card wont guarantee that all your financial troubles are erased.

You may be better off with a personal loan that allows you to repay your debt at a lower rate over a longer period with less stress on both you and your finances.

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