Do You Need to Freeze your Credit Cards?
Why Some People Find a Solution in Freezing Credit Cards
If you’ve ever heard the recommendation from financial experts about freezing your credit cards (i.e., putting your credit cards in the freezer), you may be wondering whether or not it's a good idea. Are there really consumers who would benefit by freezing their credit cards? The answer isn't always cut and dry...
Some Definitely Need It
The idea behind freezing your credit cards is that you won’t be able to immediately use them. By the time your credit cards thaw out, you will have time to think about and perhaps reconsider your purchase.
There are some consumers who would definitely benefit from freezing their credit cards. Consumers who have chronic spending problems and shop to feel good would benefit from freezing their credit cards.
If you were on the verge of filing for bankruptcy then you would benefit from freezing your credit cards. It would also make sense to not acquire new credit cards or you will only end up accumulating new debt.
Others Don't
Not everyone benefits from freezing credit cards. Many consumers use their credit cards responsibly and don’t need to hide them away in a freezer. Most consumers only charge what they need and carry a modest and manageable balance.
Some consumers who use their credit cards for every item they purchase usually do so in order to accumulate a larger cash back reward or some other similar incentive. Even though they charge a lot, they are able to pay it off at the end of the month.
A Sound Perspective
The bottom line is this... If you find yourself charging more than you can afford and making multiple impulse purchases, you really might want to consider freezing your credit cards. However, if you are a responsible spender who only charges what you can afford and knows the value of a dollar, your credit cards should stay out of your freezer.