Cut up cards or close accounts?

iVillage Member
Registered: 12-12-2004
Cut up cards or close accounts?
3
Tue, 06-07-2005 - 12:16am
Hi, Danni, and everyone. Q--GF and I were discussing finances and came up with several questions. It seems if you just cut up credit cards, then you still have all of these "open" store, credit cards, etc. and that can adversely affect your credit. For example: when I reviewed my credit score recently, I was astounded to learn that I had a credit card that was still open after 2 yrs (I had cut up the card),& that there were other"open" accounts which was affecting credit. Am thinking of closing a few (not too many). Also--is anyone else having problems with debit card/charge card? Am tempted to leave bank card "on ice" and just carry cash. ALso: how do you figure out how much $$ you will need for 2 weeks? Spreadsheets? Itemize everything you buy? Thanks. Whiz.
iVillage Member
Registered: 03-31-2003
Tue, 06-07-2005 - 10:05am

Gee Whiz...

:-)

You're right that cutting up a card does not close the account. I always call first, make sure I don't have to pay the whole balance if I close the account, then try to close it. They'll jump through flaming hoops to keep your account open, offering you everything under the sun - lower interest rate, bonus miles, their first-born, whatever. It's up to you if you want to keep it open and pay it off at the lower rate, or just broken-record them, "I'm not using credit cards anymore, I'm paying cash for everything". They'll try to scare you with the 'emergency' that you may need your card for someday. I laugh and ask them what kind of emergency would a credit card be better for than cash? They generally can't come up with one. Even locusts eating all the crops can be dealt with by not paying their outrageous fees and putting that money into an 'emergency account' instead.

I used to have a debit card problem, but now keep my account at a minimum. If I see the money in there, I'll spend it, so I just have to review my spending plan over and over and over to remind myself that I'm currently completely broke and have no money to spend on anything. Seriously though, I did not use an ATM machine for about a decade because I went so crazy when I was young.

Currently I'm using spreadsheets to figure out how much money I'll need for two weeks. The answer is - all of it. ;-)

Good luck!

Lee Ann

Lee Ann

www.werenotafraid.com

iVillage Member
Registered: 12-12-2004
Thu, 06-09-2005 - 1:28am
Thanks, LeeAnn for the info, esp. on spreadsheets. I cant whittle the debit/bank card to minimum, because I give DH money also for bills, in addition to what I pay. However, you really helped me think about where all of this ATM nickle and dime stuff is going...$20 here, $20 there, money going everywhere with nothing to show for it. So, am still thinking of leaving the ATM at home some days so I wont be tempted to use it as much. Appreciate the input. Whiz.
iVillage Member
Registered: 05-30-2003
Thu, 06-09-2005 - 11:44am


I don't use a debit card, but that's mainly because our bank doesn't offer one. It's cash or checks here! To figure out what we needed for 2 weeks, we just tracked our spending for a month, and went from there. Everything we spent, we wrote down, without judging it. That's the hard part because we'd find ourselves saying, "Well, I don't want to buy that, because I don't want to have to write it down..." But we knew that wouldn't give us an accurate picture of where our money went, how much we needed to set aside for the 2 weeks, and also, where the areas were that we could cut back in. It seemed to work pretty well for us.

For your credit cards, I'd say close what you can, and don't use what you don't close! Every open card you have will affect your credit, and not always in a good way. Unfortunately, just cutting up the card doesn't close the accounts. You have to contact the company either in writing or by phone and actually close the account. Be sure to have your best lines ready, though! "Why are you closing the account?" "Because the other ladies on the Debt Support Group board told me you guys are mean to people." Maybe you can think of some better ones... :D

Good luck!
Lisa