Personal Finance Myth #42

Multiple credit cards can push you into a debt trap | Vrid
People illustrations by Storyset

Multiple credit cards push you into a debt trap

Having many credit cards can increase the temptation to overspend & rack up debt. But it’s ultimately up to you how you manage your finances responsibly.

If you use your credit cards wisely, pay your bills on time, and keep your balances low. Then having many credit cards can give you a higher credit limit that, in turn, reduces your credit utilisation ratio. 

However, if you struggle to manage your finances and consistently overspend, having many credit cards may increase the risk of falling into a debt trap.  

If you are new to credit cards, we would suggest you to learn more about they work and how you can benefit from them. You can start from here.

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DISCLAIMER: This newsletter is strictly educational and is not an investment advice or a proposal to buy or sell any assets. Please be careful and do your own research.

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