Patricia Stallworth No Comments

It’s Monday and I have a question.

And, my question is this… what’s in your wallet? Or more specifically, how many credit cards do you have in your wallet? If you pay them all off each month and you are contributing a good amount to your savings, you can skip this ‘Minute.’ On the other hand, if you are carrying a balance each month and not contributing to your savings, it may be time to consider lightening your wallet and in the process dumping some debt.  I know it’s tough to live without credit cards but you don’t need a ton of them. Instead, simplify your life and pare it down to one or two credit cards.

However, before you do anything remember:

  1. Cancelling credit cards, could hurt your credit score because it decreases the amount of credit you have available. A big component of your score is something called your credit-utilization ratio. That’s the amount of credit you’ve used as a percentage of your overall credit line. You want to keep that ratio as low as possible and cancelling cards makes your overall credit available lower which could increase your score. However, if you can’t manage your usage of your credit cards, it maybe better to cancel them and take the hit to your credit score.
  2. If you decide to keep unused cards, in many cases, credit card companies may automatically cancel cards that you don’t use. So if is important for you to keep the card active, consider using for a recurring bill you pay and pay it off each month.
  1. Aim to use as little credit as possible. If you want to raise your credit score, don’t use more than 30% of you available credit and 10% is even better. So take a moment and write your plan to slim down your wallet and fatten your savings.

And that’s the minute for today. I love helping people with all aspects of their financial lives. If you have a question, if debt is an issue or if you just want to get your financial house in order contact me at or go to my website at and sign up for a free Discovery Session and let’s talk.

Thanks for listening and as always remember that minding your money really is the path to a richer life!