When you finally pay off a credit card bill, don't cancel it. Here's why:

Cancelling your credit card will LOWER your credit rating! That's right. Even though you'd think quite the opposite, when a credit card gets cancelled (even on your own initiative) the banks just don't like it. Banks actually prefer if you have lots of open credit cards with low or no balances. Really! Closing your credit card makes your credit rating go down, but the rates you pay to have a credit card go up.

So if you want a good credit rating (and lower interest rates):
1. Pay your bills on time.
2. Pay off the balances.
3. Don't create new credit card debt.
4. MOST IMPORTANTNLY: Keep cards open!

TIP: If you're not good with credit cards, but aren't ready to cut them up just yet, then put them in a tupperware filled with water or use a baggie and freeze them. That way you have to thaw them out  (giving you good time to think before you spend).

Here's wishing you financial happiness!