Credit Counseling: Don't Cut up That Credit Card While You're Repairing Your Bad Credit!
Contributed by Deborah Zeitler
If you're trying to repair your bad credit, I strongly counsel you to keep at least one of your credit cards
If you want to repair your bad credit, it may sound crazy for someone to offer you counseling like this. Hear me out first before you decide whether or not this is bad advice.
Emergency home repairs can make good credit go bad
Even if you haven't been late on any payments yet, if you end up with high amounts of debt on several credit cards you have seriously compromised your good credit. Suppose there's an unexpected medical emergency in your family, or you find out that your home has a bad foundation and now you have to come up with a huge sum of money to get it repaired. What if you're involved in an auto accident and sued by the other driver, and need to come up with money to pay for legal counsel?
Unless you have a large amount of cash stashed under your mattress, most people would need to get out their credit cards to pay for such emergencies and repairs, even when they know it might ruin their credit.
What most Credit Counseling service won't tell you about bad credit
You find yourself deeply in debt, overwhelmed by the amount of money that you owe and you're badly tempted to just cut those credit cards up and throw them away. You want to keep from getting even more in debt, right? But before you get out the scissors, let me offer you a little counsel about an aspect of credit that you may not be aware of. If you cut up all your credit cards, you may not be able to get another one for a very long time!
