How Do I Handle This?

Written by BonnieFreemane on 27 February 2006. Posted in Financial Advice

Dear Gil,

I enjoy your program on the "SGN Light". I listen to it on 800 AM

(Dillon, SC) and the Internet . I have a number of credit cards. I only

hold a balance on only three of them. I am not using many of the others

or I am paying off the balance. I am currently returning to college, I

have purchased a home in August 2005 from a relative and I need to do

some repairs to the home. I am concerned with the number of credit

cards I have open, although I'm not using them, especially with the

growth of identity theft. How do I close these accounts without

effecting my "good" credit score, or should I close them?

Thank you and May God continue to Bless You!

Sincerely,

ELH in South Carolina

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Dear ELH,

Thank you for your kind words. It encourages me to know that the segment on SGN The Light is helping people look toward achieving financial freedom.

First, I want to commend you on your new home and your desire to keep it in great shape. I am concerned about the number of credit cards you have though. You should know that if you initiate the closing of your credit card account, you will not be negatively affected. However, you should make sure you do it in writing and follow through by cutting up the credit card and sending it back to the company. Make sure to follow up with the company to make sure they did indeed close the account properly.

I would also start aggressively paying down the balances on those three remaining credit cards. In your case, I would start with the card with the smallest balance first. Make the minimum on the larger ones and pay as much as you can toward the smaller balance. This will give you great incentive to attack your debt with a vengeance. Try not to use your credit cards to do the repairs on your home unless it is extremely necessary.

Again, congratulations on your new home purchase and I wish you the best in your educational pursuits. You sound like you are destined for greatness!

Gil