According to Clarky Davis of CareOne Credit Counseling, these individuals fall under the "Diva" or the "Big Spender" Category. When granted with cards, these people are more likely to be in need of credit card consolidation in the long run.
1. The Profile of a "Diva"
Davis describes a Diva as someone who works and plays hard. Productivity and efficiency are the prime values that are apparent in his day to day activities. The big spender is typically a born workaholic - one who probably can't leave the office not unless the pile of documents on his desks is gone and everything that's on his activity list are finished.
After a tough day at work however, the diva is thoroughly convinced that he deserves a treat. Since he performs at his best, he undeniably deserves only the best treats. The typical work incentives are not just night-outs or movie tickets. Since you are convinced that you are bound to earn more, you recompense yourself with luxurious things - from a new pair of shoes to a brand new car. If you have the means to spend, you would do without any limit. You are the epitome of an avid shopper who loves impulse buys. You'll need credit card consolidation simply because your purchases often go beyond what you earn.
2. What Should You Do?
If you know you're a big spender, Clarky recommends that you use cards that won't cost you too much if ever you miss some of your repayment dates. "Since these people tend not to be planners, they'll want to find a card with low interest rates and no annual fees," she notes.
In this case, if you opt for credit card consolidation, get balance transfer cards. These credit cards generally have an introductory period which carries very low interest rates for the first three or twelve months of use. In most cases, they even have zero percent interest rates and zero percent balance transfer rates. These cards don't have annual fees as well.
By getting balance transfer cards, you won't have high interest rates and high late fees which are bound to magnify your bills the moment you make the occasional impulse buying and miss on your monthly repayments.
3. What Should You Avoid?
When looking for balance transfer cards for credit card consolidation, pick those that do not offer you with several purchase incentives. Having reward cards will only prompt you to spend more when you are already eager to spend. The simple rewards that you are bound to have every time you make card purchases will tempt you to swipe and swipe until you've finally noticed that you can no longer repay your balances.
According to Brent Kessel, author of "It's Not About the Money", "Rewards cards can trick you psychologically into spending more than you otherwise would." So instead of focusing on the purchase incentives, divert your attention to more productive activities - such as being debt free.
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