warning-2More warning signs you are in trouble. Today we are continuing with the thoughts of our last post. It is so easy to get into financial trouble. It can get out of hand before we know it.

Let's look at a few more warning signs and see if any of these descibe the situation you are in.

- You Can't Make Minimum Payments. This one speaks for itself, but if you can't make minimum payments on your credit cards, you're in credit trouble. Keep in mind, credit card companies don't set up minimum payments to get you out of debt quickly. Rather, those minimum payments are meant to keep you in debt as long as possible and pay the most interest!

- Using Credit Card for Necessities.  If you're using your credit to buy groceries or put gas in your car because you don't have the cash, be very careful. If you use your credit cards for household expenses for convenience, and then they pay the bill in full each month, that's fine. But this only works if you have the money and the discipline to pay your credit cards off each month, and most people don't. Pay cash for your household expenses, and don't give the credit card companies a chance to get their hands on your wallet.

- Are you constantly using different cards based on which one has credit available at that moment? If so, that's one of the surest signs you're in credit trouble. You make a few payments on one card to free up some credit, then you run that card back up to its limit while you're making payments on other cards. The problem is, you're making all these payments, but you're doing nothing to get yourself out of debt. Plus, you're hurting your credit and increasing the chance that you'll get hit with a nasty "over-limit fee."

- Have you ever heard someone say, "There was too much month for my money?" What they mean is that they ran out of cash before the month was over. How about you? Are you running out of cash before the end of the month? Do you find yourself needing groceries or gas, but with no cash to pay for them? Well, you can't make the months shorter, so you're going to have to make your money last longer. The only way to do that each and every month is to set up a budget – and stick to it! 

These are just a few more warning signs that indicate you may be in trouble. At HOPE we guide our client’s everyday toward healthy credit principals. If you would like to know more please call us at 704-503-3669. We are waiting on your call.