Credit Card Debt is something that can happen when a Credit Card is used incorrectly. In an ideal world, a Credit Card would be used during the month and paid off in full before any interest is accrued.
Unfortunately in the real world this isn’t always the case and before you know it, you can end up owing a lot of money.
In this post I look at 10 Signs that you are heading towards Credit Card Debt. Here goes.
1. Some of your Credit Cards are maxed out
If you have some credit cards where they are at the limit you are already in Credit Card Debt. You need to come up with a plan to pay off your Credit Card Debt. For example you could try to cut out unnecessary expenses, sell unwanted goods or try to work a bit of overtime.
2. You use your Credit Card to purchase expensive items
The problem with Credit, or benefit in some cases is that your buying power is increased. Only when it comes to paying back the balance do you find there are problems. Taking on debt to live a lifestyle beyond your normal means is not the best way to do things. Trust me.
3. Some of your accounts have late payments
If you find that you are not making payments on time, you are possibly running into financial problems already. As mentioned above, try to reduce your expenditure or raise some funds by selling unwanted stuff to try to get back on top of things. Late payments to your Credit Card will also affect your Credit Rating.
4. You miss one Credit Card bill to pay another
This indicates that you are already struggling with what you currently owe. It would be wise to review your finances and possibly consider seeking professional help in order to resolve the situation. Missing payments can mean additional interest charges and it also affects your credit rating as well.
5. Moving Credit Card Debt from one Card to another
If you are doing this then it can sometimes make sense, especially if you have a 0% interest deal. Be wary though that at some point you will have to pay it all back. Make sure that you can.
6. Ignoring Credit Card Statements
If you avoid looking at your credit card statements because you don’t want to face how much debt you have, you could be heading towards trouble. It is best to face things head on and then make a plan to sort your debt problems out.
7. You spend more than you repay on your Credit Card
If you are doing this then your Credit Card balance is only going to increase each month until it is maxed out. Try to reduce your spending and instead save up for things instead of charging them to your Credit Card.
8. You don’t have an emergency savings fund
You may find that you rely on your Credit Card to cover emergency expenses. Try to save a little each month into an emergency fund if you can. I am starting one soon, because in the real world it can be difficult to save, especially when in debt.
9. You don’t have a plan to pay off your Credit Card Debt
Without a plan you are not going to get anywhere. If you are not currently making a decent repayment each month towards your Credit Card debt, now might be the time to do so.
10. You use your Credit card to make ends meet
If you are using your Credit Card to make ends meet then this is a sign of trouble. Again try to reduce your monthly expenditure. If this is not possible it is time to get help. See the helpful links section on this blog for organisations who can help you with debt problems.