Credit cards are very useful, yes, but they can also be very dangerous for your financial health. While they allow you to make large transactions without having to provide a check or carry a lot of cash, while developing your credit and rounding up the end of the month, they can also hurt you if you use them to perform purchases that you are unable to pay when printing your statement. While this produces this, you get into trouble and, before long, you find yourself in a situation of over-indebtedness. You may already be there without you knowing it!
Are your credit cards overcharged? Are you “addicted” to your cards? Here are 12 clues that your debt level is being made unbearable, or at least, problematic:
You live in denial
Do you often choose to forget or ignore what you need when you have another transaction to complete with a card? Do you neglect to open your monthly statements? Do you lie to those who are dear to you to hide your true level of indebtedness?
If you answered yes to one or more of these questions, you probably live in denial of your debt. You need to regain control now by recognizing the seriousness of your situation.
You choose to ignore your balances
While you are aware that you have a credit card and that it probably has a significant balance, you never check it. You only pay the minimum anyway, so the total balance does not matter to you.
Speaking of the minimum payment, you do not pay more than this because your budget does not allow it. This is one of the most harmful practices of overindebted people: their payment is used almost exclusively to pay the interest charges and they are therefore not able to reduce their total balance.
Your budget is strict
Once your accounts, minimum payment, rent and groceries are paid, you have nothing left to keep you entertained or even saving money. Unfortunately we can not live without entertainment, so you go out and pay with your credit card. This will only increase your balances and tighten your monthly budgets a little further. Here we see the beginnings of a vicious circle.
You have nothing saved
You want to save your money to make a cushion, but you have nothing to spare. Once your accounts are paid, you have nothing left to save. This means that if you have an unexpected expense, you will have no choice but to increase your card balance.
Thinking of getting, or else you already have a second job
You do not always have enough of your fixed income to pay for what you owe. You work overtime, or you have a second job to cover your debts.
Your limits are reached
Your credit card balances are often at their limit. This is difficult not only because you can not support this level of indebtedness, but also because being at its limit, or exceeding it can generate additional costs that will only affect your financial health.
Depend on your plastic
Are you unable to leave your card at home? Do you find it necessary to use your available credit immediately when you have made a payment? These are signs that you are “hooked” and this may be a serious contributing factor to your debt load.
Used a card to pay another
If you make cash advances from one credit card to pay another, it is clear that you are over-indebted. This situation is particularly troubling because it is impossible to deleverage using this method.
We refuse to grant you more credit
You have tried to open a new credit card account because your other cards are at their limits and you need money for your everyday expenses, but you have been refused. Your debt level is already too high and you have become an unacceptable risk.
Your payments are always, or often late
Despite your overtime and hard work, you can not keep up with the demand. There is always one or more payments that are late. This hurts your financial situation even more, as late payments are reported to credit bureaus, and they have a detrimental effect on your rating.
Are you able to refund everything?
Can you repay your credit cards within a year? Otherwise, you need help. Ask yourself: When was the last time you spent a month without using your credit cards?
It’s time to ask for a hand
If one or more of the above indices apply to you, it is time for you to regain control. It is difficult to get rid of such a large debt, and it will hurt your financial and personal development. A personal loan with a reasonable interest rate is an immediate potential solution to your debt distress crisis. Quebec loans can help you find the best solution for your particular situation. Its simple and fast application process will allow you to obtain the loan you need as quickly as possible. You will be able to immediately take back control of your financial situation. Once you have paid off all your credit cards, you will feel reborn. You will only have to make a simple payment to Loans Quebec, without having to worry about a variety of deadlines and minimum payments.