Heading to financial collapse is often felt by the cardholder too late. How do you feel you have got financial difficulties? Your credit card bills are too big? You don't enjoy your plastic anymore; moreover, it worries you more and more? It is a high time to admit - you have financial problems.
In case you can't realize what exactly is wrong, get acquainted with the information in this article and remember the signs of credit crash. Watch for these alarm signals in your daily life and be ready to take the necessary actions.
1. You use your credit card all the time but you don't do any big purchases.
Some people find it hard to control themselves. Having got a good credit card offer, they start making purchases and completely forget about paying the money back. My friend once got in such situation. He actually managed to get a credit card at the beginning, he was in control of all the spending but in several months it all went disastrous. Having realized that with the help of her plastic she could buy almost anything she could never buy before she went nuts. Shopping mania - that is how we can call it. It is a good thing that his wife has found out about the problem and helped him to avoid complete financial collapse.
2. You earn less than spend.
The fastest way to the bad credit history and, as a result, bankruptcy, is spending more than you actually earn. Every single time you make purchases with your plastic, keep in mind that you have to pay a credit card anyway, sooner or later.
3. You always make only minimum payments on your credit card.
A friend of mine once got in big trouble because he was making only monthly minimum payments. He wasn't missing the payments but found he had a big credit card debt. Now he is trying to manage the situation by using secured credit cards.
4. You make cash advances from one of your plastics to pay off the money on the other credit card.
Cash advances are very expensive and no way should you try to get out of the financial difficulties by making lots of cash advances. It will just cause more complications.
5. You tend to use more than 4 plastics each month.
I used to have all kinds of cash rebates cards, gasoline credit cards, frequent flyer credit cards, etc. Eventually, I got into deep debts. Why? I simply couldn't manage all of them - it is difficult to keep track of many cards at a time. Now I've only one plastic. I am pretty happy with it.
6. You tend to exceed your credit card limit.
I did this very mistake myself. I kept spending more and more and never thought I was over the credit limit. As a result, not only the limit was exceeded, interest rate was increased substantially.
1. You don't tell your spouse all the truth about your credit card usage.
Seems weird but some women and men just hide their credit card bills sent by credit card companies. Hiding the truth is no way a constructive solution of a problem. Try to manage the issue together with your partner.
I have described the main alarm signals that might help you avoid getting into debts.
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