Many people cling on to credit cards that they have cleared a long time ago, but have they considered the benefits of cancelling the card.

A survey revelled customers cut up their cards once cleared or continue to make small purchases in an attempt to keep the card active.

Doing these things makes it easy to fall back into old habits. It is easy to request another card and easier to start making purchases using the card.

Cancelling the card is much more effective in getting free of debt. Cancelling your card account also has other benefits such as making a huge improvement to your credit rating.

It is also worth considering how long ago you took out the card, since then a more beneficial card for you may have been released. This means you could be paying less interest or picking up benefits for using your card.

An industry expert commented it is useful to have access to one card for emergencies, but having two or more cards sitting around could prove to tempting for some so cancelling these is a great idea.

Cancelling cards can be done by telephone or mail, mail is usually more effective. Send a letter recorded delivery and keep a copy this means you have proof of cancelling your card. Always ask for confirmation to be sent.