Tell-Tale Signs of Credit Card Debt
One of the debts that you may want to avoid as much as possible is your credit card debt.
First, collection agencies have an uncanny way of getting hold your numbers, and they would begin to call you incessantly.
When you have default payments, these will be reflected in your credit report, which, in turn, will make it hard for you to obtain a loan.
You can avoid credit card debt if you will be able to determine some of its tell-tale signs.
Here are some of them: 1.
You are already close to your limit.
Every card has its own limit, and it depends on the kind of package that you've chosen.
If you're already close to it, though, it means that you've almost exhausted your resources, and you can hardly keep up with the payments anymore.
Everything that you've paid into your credit card will be deducted from your balance.
2.
You are already using your own savings.
If you can hardly touch your card and you begin using your savings, it won't be long before you're in deep financial trouble.
Not only will you have to pay huge credit card obligations, but you will also not have anything to utilize for the payments or even for your ordinary expenses.
This is actually a very bad combo, and most who found themselves in this situation file for bankruptcy.
3.
You are making minimum payments.
It's always best to pay off the entire amount, including the interest.
Otherwise, the latter will accumulate and grow bigger since the basis of the amount will be your remaining debt.
Making minimum payments is just a form of compliance, but it can hardly do anything with your credit card debt.
The interest charges will still be high.
Moreover, if you keep on using it while you're making your minimum repayments, there will come a time when you cannot pay anything in your credit card.
4.
Your credit card has been declined.
This is the ultimate nightmare, especially if you find yourself battling it out with the salesperson because you cannot make a purchase and all of the customers have their eyes on you.
There are two possible reasons for this.
It's either you no longer have enough credits in your account, or it has been cut off for non-payments.
First, collection agencies have an uncanny way of getting hold your numbers, and they would begin to call you incessantly.
When you have default payments, these will be reflected in your credit report, which, in turn, will make it hard for you to obtain a loan.
You can avoid credit card debt if you will be able to determine some of its tell-tale signs.
Here are some of them: 1.
You are already close to your limit.
Every card has its own limit, and it depends on the kind of package that you've chosen.
If you're already close to it, though, it means that you've almost exhausted your resources, and you can hardly keep up with the payments anymore.
Everything that you've paid into your credit card will be deducted from your balance.
2.
You are already using your own savings.
If you can hardly touch your card and you begin using your savings, it won't be long before you're in deep financial trouble.
Not only will you have to pay huge credit card obligations, but you will also not have anything to utilize for the payments or even for your ordinary expenses.
This is actually a very bad combo, and most who found themselves in this situation file for bankruptcy.
3.
You are making minimum payments.
It's always best to pay off the entire amount, including the interest.
Otherwise, the latter will accumulate and grow bigger since the basis of the amount will be your remaining debt.
Making minimum payments is just a form of compliance, but it can hardly do anything with your credit card debt.
The interest charges will still be high.
Moreover, if you keep on using it while you're making your minimum repayments, there will come a time when you cannot pay anything in your credit card.
4.
Your credit card has been declined.
This is the ultimate nightmare, especially if you find yourself battling it out with the salesperson because you cannot make a purchase and all of the customers have their eyes on you.
There are two possible reasons for this.
It's either you no longer have enough credits in your account, or it has been cut off for non-payments.
Source...