Just Cut Them Up!

Many consumers with out-of-control debt have too many credit cards—this of course being one factor in the debt.  Then rather than consider all of their options, they take out a second mortgage on their home.  This can be a smart move for some—it has its definite benefits. 

Then you have the individuals who see the second mortgage as a way to clear their credit cards for all those luxury items they just afford.  If you are going to go through the trouble of taking out a secured debt, with all of the drawbacks there, at least make sure that you aren’t running up all your credit cards again. 

Once you have a cleared balance, cut up your credit cards.  Keep one or two major cards to use—emergencies happen—but do not allow yourself to have access to that much credit.  Debt consolidation just doesn’t work if you only continue to add to your debt.   ■