Take your scissors to unneeded credit cards

Scissors cutting credit card

The most dangerous things in your wallet — at least when it comes to spending — are your credit cards.

Easily used and easily forgotten, they are debt magnets.

One fast way to curb your spending and reduce debt is to limit the number you're carrying around.

You want to keep no more than two or three credit cards out there.

Finding the ones to keep and the ones to ditch won't take long. You can quickly check the terms online or through your credit card's customer service line.

Take a particularly close look at cards that charge monthly or annual fees. They are usually the most costly to carry. And disregard reward programs. They're a nice perk, but not a good reason to keep a high-cost card.

Once you've sorted them all out, take your scissors to the losers in your wallet.

Don't be surprised if you wind up destroying all of your store-based credit cards. They often charge the highest interest rates and fees.

After you give the plastic remains a proper burial in the trash can — or shredder — call up the issuing banks or stores and close the accounts.

Keep in mind that, because you're reducing the amount of credit you have without reducing what you owe, your credit score could drop.

Once you close those accounts, the percentage of credit you're using relative to the amount of available credit you have might jump up to 50% or more. The formula used to calculate credit scores also penalizes consumers who have used at least half of their available credit.

But conquering the temptation to spend is worth the hit for many consumers.

Check out 7 smart moves to curb your credit card spending for more insights.