Although debt is a dirty word to many, the fact of the matter is that the vast majority of us are in debt in some way or another. No matter how hard we try, there are times when you simply need something and cannot afford to pay for it straight off. For example, school tuition is the most common form of debt, and most of us cannot afford to pay for our educations up front. Discharging debt doesn't have to be difficult.
So, most of us are dealing with debt in some way or another, but are we managing it correctly? Let’s look at a few signs that may indicate that your debt is taking control of you, instead of the other way around.
1. You can only make the minimum payment each month, and even that is a stretch.
This is a very bad sign, especially if you have more than one credit card. Your monthly minimum payment is only a suggestion from the credit card company and usually is not enough to pay down the interest that the account racked up for the month. This means that you are caught up in a spiral that may take years to correct.
Solution: Consolidate several cards into one low interest card. Make larger monthly payments to pay down that interest as well as the actual debt.
2. You use your cards for the majority of your purchases.
Credit cards should be used really only in times of emergencies or when you would like to take advantage of the ability to get a larger ticket item and pay it off gradually. Many of us fall into the trap of using our cards for gas, groceries or things that we really don’t need. Over time, these purchases really add up.
Solution: Only use that card for a real emergency. Set up a budget for yourself and remove your cards from your wallet if you have a hard time sticking to it. Never spend more on your credit card than you can pay off in a month’s time if you had to.
3. Late payments and over balance fees occur commonly.
Once you’re trapped in a debt spiral, late payments start to become more common as you try to scrape together enough money every month to make those payments. If you’re already close to your limit (how a credit card limit is determined), a few late fees can put you over the top, and then you’re dealing with over balance fees as well. This can quickly get out of control, especially if you are only making minimum payments.
Solution: Always send your payment in 10 days before it is due. Many card companies use 9am on the morning of your due date as a time cutoff. If that day’s mail doesn’t have your payment, you will be considered late. If possible, try to pay your payments online so you don’t have to worry about it getting delayed in the mail, but watch out for surcharges that card companies will sometimes tack on for online payments.
Photo Credits: 1
Originally posted 2008-08-07 05:36:39. Republished by Blog Post Promoter
Related Posts -
Restore Your Fico Score – Part One While obsessing over a FICO score is not a good idea, this is a number that will have a lot of bearing in your life. This number determines whether or not you will be able to get a house, a new credit card, or in many cases, whether or not...... -
How to Go Into Debt to Get Out of Debt This really sounds like the ultimate oxymoron, but one of the best ways to get out of debt is to go a little bit further in. What’s that? First, to help this make more sense, let’s clarify – if you need to get out of bad debt, going into good...... -
Learning About Hidden Credit Card Charges It is very tempting to get an offer for a new credit card with a low interest rate, but make sure to read the fine print on the application or you could find they are charging you fees that were hidden in the small print and that you are subject...... -
9 Warning Signs That You Have TOO MUCH Debt! When it comes to accruing debt, it is really and truly tough for people to face the cold hard fact that they are in way over their head. It's much easier for you to turn things around when you are aware of what the signs are for too much debt,...... -
Ruin Your Credit Fast, pt1 Granted, there are a wide variety of different ways that you can ruin your credit over time, but do you want to know what the quickest and most dangerous ways are? Here are five ways that you can quickly and effectively destroy your credit. 1 - Break your budget. Sure......
Related Websites -
Reader Success Story: Paying Credit Card Bills On A Weekly Schedule. Back in July I wrote a post titled "Paying Off Debt And Saving Money Can Be Done At The Same Time", which talked about how by making weekly or biweekly payments to your credit card can ease the burden of making those minimum payments you may have found yourself with....... -
5 Effective Tactics For Dealing With Debt It is estimated that 70% of the population are carrying a crippling amount of debt and the amount of debt held by citizens has increased to record levels. Many people are having these financial troubles and their debts continue to increase as they find themselves spending more than they make...... - Never Pay Credit Cards Before Mortgage The last couple years have proven to be tough times to be a homeowner. Home values around the country have seen a decline, and many homeowners are now feeling the squeeze from signing up for adjustable rate mortgages. Many homeowners are having a hard time coming up with mortgage payments,......
-
Determining Sports Card Values If you are serious about collecting sports cards of any type, then you are going to want to have an understanding of what you can do to determine sport cards values as well. When it comes to the sports card collecting hobby or past time, there are certain questions that...... - Getting Out of Credit Card Debt; You Can Do It! Getting out of credit card debt can seem like an unrealizeable goal. Credit card debt can cause massive stress. Imagine a life without that debt. Can you see it? If you’re like many average families, you may have a hard time getting a clear picture. Many people have been making......
- Tee Times Green Fees Golf
- Larger than 9x12 Rugs, Carpets Antiques
- Credit, Charge Cards Trading Cards Collectibles
- New Balance Womens Shoes
Categories:
Debt, Goal, Personal Finance, bad debt, credit cards, good debt
Tags:
1 comment so far ↓
You forget #4 and the biggest indicator of all…you get cash advances on one card to make a payment on another – at the same bank.
Travis Tritt told an audience that he used to do this. I just couldn’t believe it, but the response from the audience seemed to indicate that it was plausible. When it comes to debt, I can believe just about any silly story because I’ve heard some real goofy ones.
Clair
Leave a Comment