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Step 1
Are you only paying the minimum payment each month due on your credit card? This is a definite sign that you have spent, and may be continuing to spend, more than you can afford. Paying only the minimum payment will not help pay the balance on your credit card and usually just barely covers the interest your debt has accrued.
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Step 2
Are you regularly accepting new lines of credit and/or increasing your credit limits to meet your spending? Again, a definite sign of credit card trouble. Unless you are able to pay off your credit card balance each month, it is wise to limit the number of credit cards and also keep your credit limit reasonable.
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Step 3
Do you lose track of purchases each month and use your credit card to pay for routine monthly expenses? It is extremely important to know what you are spending and how much each month. If you do not have a good pulse on your spending, you will easily accumulate more credit card debt than you can pay off.
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Step 4
Do you know all of your credit card accounts? You should definitely know how many accounts you have and how much you owe on each. You should also know the interest rates and due dates for each credit card.
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Step 5
Are you receiving phone calls or late notices from your credit card companies or debt collection agencies? This is a red flag and a sign for immediate action! Do not ignore those phone calls and notices. Contact the representatives for each and attempt to schedule payments within your capability. Ignoring them will only hurt your credit in the long run.
Comments
violet4me said
on 7/26/2009 Essential advice on recognizing credit card trouble before it becomes overwhelming! 5*
Coach4U said
on 7/18/2009 I read the article how to recognize the signs of credit card trouble and found it to be very useful. Good job. "5"
hazelknows said
on 6/24/2009 Good article on the use of credit cards.
leaper said
on 6/24/2009 Good information on credit cards.