There might come a point when you don’t know how far you have gotten into debt, but there are always some signs that you should look for. These particular signs can help you see that you indeed have a problem and try to stop the problem before it gets worse and here are the top signs to look for.
If you can’t meet your basic needs without using a credit card. This is an obvious sign that you need to get things straightened out because if you are using the card to pay for groceries, food, clothing and gas, then there is definitely a problem. You need to work out a plan regarding how to live within your means and get rid of your debt.
You are avoiding paying payments by transferring balances. This is a bad idea because sometimes you will just end up with more debt because in the end you will only be able to get the cards that have a fee, which isn’t at all good. This is a red flag and if this is happening, stop it now and get things back in order.
Skipping one top credit card bill so you can afford to pay another. This shows that you have too many cards and way too much debt. While prioritizing your payments always important skipping your different payments isn’t good. Not only will this affect your credit score, but it will just end up giving you a higher balance from fees and interest.
You are avoiding or ignoring your statements. This isn’t a good sign and if you are going this far, then you should work on getting out of debt so that you can stop avoiding them. Avoiding the statements isn’t going to make them stop coming, but it will keep your balance growing.
If you are charging more than you can afford to pay off. This is one of the top signs that you are in to deep already and you need to change your habits. You should put the cards away and start paying them off instead of charging more on the credit card.
If there are no debt payoff plan or emergency savings. You need to have a plan to get out of debt and even some emergency savings. The plan should allow you to get out of debt as fast as possible without affecting your daily expenses and other payments. You need to get some sort of emergency savings because if you lose your job or something comes up it will allow you to avoid charging it on the top credit card.
If you have maxed out cards or even past due accounts. These are the other top signs that show you are in too far and that you need to figure out how to solve the problem. Having past due and maxed out cards means that you can’t afford to pay them off or even pay the minimum balances, which is never a good thing. You should make the payments as soon as you can to bring the accounts in good standing and pay down the balances fast.