You've Paid Off Your Credit Cards. Now What?
If you've successfully dug yourself out from under a pile of credit card debt, congratulations! It's no small task to pay off high credit card balances, given the enormous interest rates that most cards charge. But your task isn't quite complete: If you don't make some changes to how you handle your money, you could end up with a whole new mountain of debt.
The average American has pretty terrible financial habits. Namely, we tend to spend every penny we make and then some (hence our enormous credit card balances). Right now, when you've gotten rid of your high-interest debt, is your big chance to turn things around and become an exception to this rule.
Step one is getting rid of the temptation that credit cards present. It's possible to use credit cards responsibly -- and that comes with some considerable benefits -- but for now, your best bet is to quit cold turkey. If you don't want to cancel your existing credit cards, at least cut them up and hide the credit card numbers somewhere so you won't be tempted to use them.
Source: Fool.com
