As credit experts we often hear people say, "I don't know how we got into so much debt."
In truth, all the warning signs were probably there – they just didn't know what to look for or refused to see the warning signs. We don't EVER want this to happen to you. So let's look at some warning signals that you could be headed for serious financial and credit trouble.
Look closely at these warning signs and be honest with yourself. If any of these signs look familiar, we've got advice for you on how to stop the madness before it becomes out of control.
- Are you playing the balance transfer game? It all sounds so great – in theory: "Pay off a high interest rate credit card balance with a low promotional rate, and you'll save a lot of money!" The problem is that most people don't pay off the balance before the promotional rate ends, and then the interest rate shoots up like a rocket. Making things worse, people often run up the balance on the credit card that they paid off using the transfer, so now they owe twice as much debt.
- Have you lost Track of How Much You Owe? Without looking at your statements, do you know how much credit card debt you owe? If you can't answer correctly within a few hundred bucks, you're probably not paying enough attention to your debt. Credit cards are among the most expensive debt you'll ever have, so you need to know what you owe on them at all times. Keep track of what you owe to the penny so you can put every extra dollar toward paying down that debt.
- Have You've Been Turned Down for a Loan or Credit Card? if you've been turned down for a loan or credit card recently, that's still a pretty sure sign you could be headed for credit trouble. Being turned down means there's something about your finances that lenders don't like. They believe doing business with you is a bad risk.
- Do you check your credit card statements thoroughly each month? If not, why is that? Perhaps you figure if you don't look at your credit card statements, you won't have to worry so much about the debt. "Out of sight, out of mind." Right? That might sooth your feelings of stress in the short run, but it's a recipe for disaster down the road. Running from a problem will not make it go away!
These are just a few warning signs that indicate you may be in trouble. At HOPE4USA we guide our clients everyday toward healthy 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.