Credit score also takes into account your balance-to-limit ratios. When you carry a high balance (over 50% of limit) on any revolving account or when your total balances are in excess of 50% of your revolving limits, your credit score take a hit.

When you get mad at a creditor and close your revolving account, you increase your balance-to-limit ratios, assuming you carry a balance on at least one account. That subjects your credit to a downgrade. Downgraded credit means you're more likely to be targeted by creditors for their new, uglier terms.

Cutting up cards might feel good, but closing accounts out of fury or the inability to control your spending is like financially shooting yourself in the foot. Compound this with the fact that cc companies aren't as anxious to open new accounts, so you might find yourself in a tougher position to open an account should you need or want to do so.

If the chop 'n' close approach works for you, then do it. But don't just do it because your neighbor, a palm reader, or Dave Ramsey says you should. Times are tougher, and I hate to see people doing things that could make it harder on them subsequently. We all get mad, and that's okay.