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When to Cancel Credit Cards?

How to Know If You Should Cancel Your Credit Card

Are you the type who can't handle a credit card? Don't be too sure — most of us can't, according to OnSugar blog Beauty and the Budget. Read on to find out what she has to say about the decision to cancel your credit card.

Credit card spending isn't always a bad thing, but in the hands of certain spending personalities, it can lead up to major debt.

After paying off my credit card, I realized a valuable lesson about myself — I can't handle having a credit card. It's embarrassing to admit, considering I love to dish my learned financial "wisdom" on this site, but it's the absolute truth. For certain spending personalities it is absolutely dangerous to own a credit card — even for emergencies.

If you continuously max out your credit cards, are late on your bills, or have trouble paying them off, you shouldn't have one. That sounds like everyone, right? Well, it practically is everyone. There are few people who can truly manage a credit card the right way — where you only buy what you can really afford and pay the balance off at the end of a month or two. Although I know you aren't supposed to max out the entire card, I don't have the self discipline to not blow it. And let's face it, we never use our credit cards for actual emergencies.

When you're young, it's okay to get a small credit card (with a $500 limit or less) to first establish your credit. Track how, when, and why you spend on the credit card. How are you using the card? When do you buy things with it? If you don't max it out and can pay off your balance at the end of every month, you're probably okay to have one — just don't get crazy when they up the credit limit. However, if you go on massive shopping sprees, make foolish purchases, and max it out, you should get rid of it.

For more on whether you should cancel your credit card, read on.

If you're already in credit card debt, do yourself a favor, and cancel the cards so you aren't tempted to spend on it when you pay the balance down. Work hard to pay off the balance. You'll find that once you start spending your own money, you don't have to worry about owing anyone anything — and that can make life a lot less stress free!

To read other great tips, visit the Beauty and the Budget blog. You can start your own OnSugar blog for a chance to be featured on the PopSugar Network.

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