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 financial warning signs and see if any of these describe the situation you are in currently. If so, you may need to take action immediately.
- 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 big 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!
- You're Using Credit Cards for Necessities. If you're using your credit cards 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 in full each month, and most people don't. If you are struggling with financial discipline consider paying cash for your household expenses, and don't give the credit card companies a chance to get their hands on your wallet. (NOTE: That does not mean you should close your credit card accounts as this can hurt your credit scores too.)
- 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 serious financial and 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 having 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 credit and financial trouble. At HOPE4USA we guide our clients everyday toward healthier credit principals. If you would like to know more please call us at 704-499-9696. We are waiting on your call.
Ron Lambright is an expert with over a decade and a half of experience in credit repair, credit improvement, credit reporting, and credit scoring. Ron is called upon weekly to speak at various seminars educating attorneys, loan officers, Realtors, other professionals, and consumers regarding the complex subjects of credit reporting and credit scoring. He is regularly featured on talk shows and podcasts and has been published in countless articles, educational handbooks, and blogs. He is an expert at teaching consumers and business owners how to achieve their credit related goals. Connect with Ron on Facebook here.