Signs That You’re Headed Towards Credit Card Debt

These may be the signs that you’re headed towards a credit card debt. Solitary same you have your credit card that you may soon find impossible to pay off.

You are shopping using your credit card for everyday items like food, clothing and gas for your car. Having to use credit instead of creditor cash for everyday purchases may be a sign of financial trouble.

You are transferring balances frequently. Eckstein if you find that you are transferring balances frequently from one credit card to another simply for the purpose of delaying payment then you are only delaying the eventual and building up extra debt in terms of finance charges and possessing fees.

You are charging more on your credit card then you pay every month. Charging more on your credit card than what you pay when the Bill comes means that you are living beyond your income. Pretty soon you will have approached the credit limit on your credit card which will force you to pay the balance. Revolving the balance continuously will make it more expensive for you to pay back. Having credit cards close to their credit limit will also do damage to your credit score.

It don’t have an emergency fund. If you don’t have an emergency fund it means that the next emergency that arises when you need cash between you will rely on your credit card and run the risk of running up a huge amount of debt which might take months years to pay back.

You do not have a plan to pay off your credit card debt. If you are running credit cards with a balance on them you need to make a budget and a financial plan to start paying it off. Leaving the debt on your credit card will accrue financial charges and will damage your credit score. Not paying the balance on your credit card at all will have your account charged off and reported as delinquent which will ruin your chances to qualify for credit any time in the future.

Using credit cards to buy expensive items. If you use a credit card to buy things that you cannot afford simply by relying on the fact that you can roll over the balance from one month to another then you are walking the fine line between being debt free and being under debt. Using credit cards to maintain a lifestyle that you can’t afford isn’t a wise decision for your future income.

You have accounts due. If you have credit card accounts that are past due you may be looking at a situation where you are unable to make the payments on your current accounts. The longer you put off paying your past due accounts the more difficult it will be to bring them to the current status again. Try and deal with the situation as quickly as possible. Take the help of a legitimate non-profit credit counselling agency if you have too.

You have maxed out credit cards. If you are using your credit cards close to the maximum credit limit than it may be possible that you are using your credit cards dos substantiate your income. If you Max out your credit cards it means that you do not have any more credit available to you. Till the time that you do not pay them off you will not be able to use them any further. Keeping your credit cards close to the max limit. In the danger of you going over the credit limit which will result in you be charged an over the limit credit card fee. You also run the risk of your creditor increasing the interest rate on your credit card which will prove to be an expensive proposition for you if you are in the habit of revolving your balance one month to another.