Pros and cons of having more than 1 credit card

(Editor's note: This article was written by MoneyMax, the Philippines’ foremost online platform for comparing financial and telecom products and services, for ABS-CBNnews.com. Find out more at MoneyMax.ph)

MANILA, Philippines - Most people seem to think that using a credit card equates debt – and it does, if used irresponsibly.

Responsible use of a credit card basically means being able to pay the bills on time and in full (unless the item is on layaway), so if you have multiple credit cards all at the same time, you might find it difficult to manage at times.

There are certain advantages that come with having more than one credit card. On the flipside, there are also disadvantages that come with it. You may think that a credit card is a gateway to all kinds of things, but it can also be a gateway to all kinds of bad debt.

They say it takes a particularly responsible person to handle a credit card, much more for two or more cards with each of their own credit limits.

Before you apply for an additional card, you might want to take a look at the pros and cons of having more than one credit card in your wallet.

Mobile users can view the desktop version of the slideshow here.

source: www.abs-cbnnews.com

How to Create Wealth With Debt

On the surface, this seems like an oxymoron. How could you possibly use debt to create more money? It actually isn’t an oxymoron, but you’re going to need to change your perception of debt and classify into two different categories for this to make sense. There are many ways that going into debt can actually end up securing your future, just as there are many ways that going into debt will ruin your future. Let’s look at both to discover how to turn your debt into wealth.

First, let’s discuss the kind of debt that you are probably most familiar with. Bad debt is the kind of debt that most of us get into after overspending on things that we really don’t need. It’s easy to get caught up in commercialism and want to have all the things that we think we deserve. Many of try to live like millionaires on a small percentage of their budget. With poor management, debt quickly grows out of control and before long, we find out that we are in way over our heads. Bad debt is very common, especially among people who are just starting out and have yet to learn this very valuable lesson.

The second kind of debt is much different. This is the kind of debt that you use to invest in something. The first kind of good debt you’ll probably get into is your home. While it really doesn’t have many measurable returns, unless the property value increases, it does have emotional returns and serves as a good lesson in how using debt can help you get better off in the long run. Think of this as an introduction in how to use debt to grow wealth.

There are many ways that you can leverage your debt to start creating alternative streams of income. For example, let’s say that you are living paycheck to paycheck and you have the opportunity to invest in a stock that is destined for greatness. You may have a couple of bucks put aside, but it’s barely enough to buy one share. You can let this opportunity pass you by, or you can leverage debt to help you take advantage of this future stream of income.

What’s better – going into a little debt to reap big returns or spending the rest of your life wishing that you had the money way back when before that stock took off? Managed properly and used for the right reasons, debt is a very powerful tool. If you want to make money, you are going to have to have money. Unless you came into this world with a silver spoon and a trust fund, chances are you don’t have a lot of it just sitting around. That doesn’t mean that you can’t become wealthy.

By leveraging debt and using it well, you can easily achieve your dreams of greatness. Just make sure that you don’t overextend yourself or make bad decisions.

source: richcreditdebtloan.com

Getting Rich While Paying Debt Off

One of the wisest things that you can possibly do this year, if you are not already doing it, is to become debt free. Here is something that you may not currently be aware of: Gaining a control over your finances that you did not previously have could actually make you rich. The process alone of sitting down and finally making a legitimate and concentrated effort on cutting down your spending while increasing your income can actually force you to take a long hard look not only at your situation, but also at things that you can do to get yourself out of debt, eliminate the potential for future debt and ways to actually make you rich as well.

There are a wide variety of instances out there involving people that found not only a way that would allow them to get out of debt, but also with it, a way for them to really and truly begin to build up wealth for the first time ever, now that they have a new-found power over their income and finances. First and foremost, one of the biggest ways that you can create wealth by getting out of debt is by improving your credit score, which will make investing in a home or other investment options significantly easier in the long run.



This is a remarkably advantageous endeavor to undertake, because getting out of bad debt and getting into good debt is the right way to build wealth. The kind of debt that we are talking includes but is not limited to purchasing homes and purchasing other types of assets that specifically work to improve your income. If you build a better credit score, then you will finally find that it is significantly easier for you to create an investment portfolio that is real, and that is really and truly benefiting you for the first time in your life.

The leverage that real estate is capable of affording to its investors is often sadly overlooked by the average person. If you have a credit history and credit score that are solid because you have gotten out of debt, then you too will find the chance to participate in the lucrative real estate market. This is where real and true wealth is capable of coming from. So if you want to become wealthy by way of smart real estate investing, then you need to be willing to make the decision to pay off all of your consumer debt so that you can invest in the positive type of debt and stop falling prey to the negative type of debt.

The decision to pay off your consumer debt is one of the smartest decisions that you can make this year, and one by product of this process is that you will finally be able to generate some real wealth when your credit score and credit history reflect your lack of consumer debt.

source: richcreditdebtloan.com