Call 1-719-520-0164 Today!

15 Sep 2012

Colorado Springs Debt: Can You Have Too Many Credit Cards?

Part of heading off serious debt problems is recognizing when you may be heading toward them.

Our Southern Colorado Chapter 7 bankruptcy lawyers have seen a number of clients who file for bankruptcy years after the warning signs started flashing.

In some cases, there wasn't much they could do about it. When you get derailed by an illness or a job loss, you may have little choice but to roll with the punches.


Other times, though, you may be able to address certain issues and establish alternatives.

One of the prime examples of this is credit card use. Credit card companies are experts at making money, and their ultimate goal is to make money off you, whether through annual fees or high interest rates or missed payment penalties.

The average consumer has three credit cards, according to credit bureau Experian. Only 15 percent have more than seven cards. Reuters recently profiled a man who had 40 credit cards - and was making money off of the cash back rewards! But the fact is, that is extremely rare. The issue is not so much how many cards you have, but rather how much credit you are using.

Typically, as long as you don't apply for too many cards at once, you could have a dozen credit cards and not be in trouble. In fact, it may actually boost your credit score if you have credit that you aren't using.

However, the problem is when you take out more credit than what you can afford. The more credit cards you have, the more tempted you will be to utilize that credit.

So let's say you have $100,000 in credit that is available to you. If you have $10,000 in credit actually charged on those cards, you have a 10 percent credit utilization ratio. FICO indicates that those consumers who have the best credit scores (generally defined as 760 and over) have a credit utilization ratio of 7 percent.

So as with anything else, the bottom line is to control your actual spending. If you can have more cards and honestly say you won't take out the credit on them, by all means, have more. However, if you worry that having access to that credit may tempt you to dig yourself deeper in debt, simply decline those offers.

Stephen H. Swift

Managing Attorney
Law Office of Stephen H. Swift, P.C.

Client Testimonials

  • All
  • 80903
  • 80909
  • Alamosa
  • Attorney
  • Bankruptcy Attorney
  • Buena Vista
  • Burlinton
  • Canon City
  • Colorado
  • Colorado Springs
  • Compassionate
  • Cripple Creek
  • Denver
  • Divide
  • El Paso County
  • Falcon
  • Florissant
  • Fountain
  • Hartsel
  • Highlands Ranch
  • Kind
  • La Junta
  • Lamar
  • La Veta
  • Lawyer
  • Manitou Springs
  • Monument
  • Professional
  • Pueblo
  • Rocky Ford
  • Salida
  • Southern Colorado
  • Teller County
  • The Springs
  • Westcilffe
  • Wiley
  • Woodland Park
  • Default
  • Title
  • Date
  • Random
  •  

    "Everyone I talked with or met with was knowledgeable, professional and helpful. I rate this law firm a 10 on every count. This was my second bankruptcy, and I used your office the first time. Everything was very professional and everyone was very helpful and pleasant to interact with.

    Matthew Hansen was nice, knowledgeable and professional. Alicia was very pleasant, friendly. Cris was very nice and helpful."

    -Karin, Colorado Springs, CO



     

    • Colorado Springs
  •  

    "From the first time that I entered the office, I was treated with the utmost respect. It was like I had been knowing all of the employees for years!! Every person that I came in contact with was extremely courteous!!!

    I rate my overall experience a 12!! And I wouldn't change a thing on the website.

    Cris is absolutely wonderul!! While Alicia was extremely courteous and humorous!!!

    Stephen (Swift) was extremely professional and courteous. One of the nicest gentlemen that I have Had the pleasure of working with. I can't thank him enough."

        

    – Pete, Colorado Springs, CO  

    • Alamosa
  •  

    "I was referred by a client. I rate Swift Law a 10 on the quality of legal expertise I received, on my phone calls being returned promptly, on the staff being friendly and helpful, and my overall experience. Cris was very helpful and informative, and Alicia was very thorough.

    Matthew Hansen was wonderful." - JoAnn, Colorado Springs, CO



     

    • Colorado Springs
  •  

    "Everyone was professional, friendly and caring of the situation I was in.

    Cris is the best. Very friendly, caring and informative to my questions. Made me feel at ease.

    Alicia was friendly. Only talked with her one time on phone when Ward was not available.

    Ward was very friendly and made me feel very comfortable. Very good at his job.

    Mr. Swift was very efficient, professional and friendly. Right off he makes you feel like he is on your side in a difficult situation. Gets the job done.

    Thank you to ALL - for your professionalism, caring and integrity during the process of my bankruptcy. "

     - Anonymous, Colorado Springs, CO




     

    • Colorado Springs
  •  

    "I rate this plance a 10. Very friendly & professional.

    Just want to thank all the staff for making this process so easy & fast for me. You guys are the "BEST".

    Both Cris and Alicia were very friendly & helpful. And Stephen was very professional & knowledgeable."

    -Jocelyn, Colorado Springs, CO



     

    • Colorado Springs
  •  

    "My attorney (Matthew Hansen) is a very kind person.  I felt very confident in his skills. He is very knowledgeable and efficient.  He didn't make me feel embarrassed to be filing for bankruptcy.  Thank you Matthew!  Laura was very friendly, and everyone I interacted with was very nice and helpful as well.  " 
      –  Sherry M., Colorado Springs, CO



     

    • Colorado Springs
load more hold SHIFT key to load all load all

Popular Blog Posts

 

Get In Touch

 733 E. Costilla St., Suite A

     Colorado Springs, CO 80903

 Phone: (719) 520-0164

 Fax: (719) 520-0248