Are You Heading Towards Credit Card Debt?

Are You Heading Towards Credit Card Debt?

When credit cards are used irresponsibly they can lead to a mountain of debt.

Here are some signs that you should watch out for before you end up in credit card debt

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Meeting Basic Needs with a Credit Card

Your salary and not your credit card should be used to buy everyday items like gas, food and clothing. If you are using a credit card to cover these items then it could be a sign that you are heading to financial trouble. You need to try and live within your means so that your trend towards using your credit card is reversed.

Transferring Balances

Credit card balance transfers will make sense at times like if you need to consolidate your credit card balance or if you looking for a lower interest rate. However, if you are constantly transferring balances and not paying them down then it is an issue. You need to find a way to make payments regularly on your credit cards before you run out of credit cards to transfer balances on to.

Skipping One Credit Card Bill To Pay Another

It is a good idea to prioritize credit card payments, but skipping a payment is unwise. If you find that you are struggling to find the money to make a credit card payment then you are already in trouble. When you skip payments too many times your credit will be damaged.

Ignoring Credit Card Statements

Hiding away from your credit card debt will only give it time to grow. You need to face your credit card debt as soon as you can so that you can take it head on before it gets worse.

Charging More Than You Pay

If you are charging more than you are paying then your credit card debt will increase. To avoid credit card debt you need to stop using your credit card and start paying.

Having No Emergency Fund

If you do not have an emergency fund then you will be forced into using a credit card for an emergency. Credit card debt that has been created because of an emergency expense can be difficult to pay off. You should then think about starting an emergency fund by putting a small amount away each month.

No Plan To Pay Off Your Credit Card Debt

If you are not working to pay off your credit card balances then you could be paying on the cards for years.

Using Credit to Buy Expensive Items

One of the lures of a credit card is that it allows you to buy more then what you can really afford. Expensive items can only be afforded by extra income or lower expenses. It is not a good idea to use credit and get into credit card debt so that you can keep a lifestyle that you are not able to afford.

Maxed Credit Cards

If your credit cards are maxed out then you are already in credit card debt.

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