Having a credit card for emergencies might seem like a good idea, but every person’s definition of “emergency” could vary widely. If people are not careful, it can be easy for credit card debt to get out of control. There are some warning signs that Florida residents can look for to determine whether they are in financial trouble.
Regardless of why consumers are using credit cards instead of paying cash, it can be easy to lose track of just how much debt is being accumulated. If people realize that they are consistently at or near the card’s credit limit, that is a warning sign that there is too much reliance on it. Even if the balance of a credit card is not that high, the fact that the card is nearly maxed out could make it more difficult to obtain more credit, if needed.
Some Florida residents find that regardless of the balance, they are only able to make the minimum payments on their credit cards. Some people shuffle their balances among cards that have zero percent interest rates. In the meantime, their credit scores are suffering. These are warning signs that financial trouble could be brewing.
Any combination of these circumstances could mean that financial trouble is on the horizon. Unmanageable debt can cause a great deal of stress, which is only exacerbated by creditors and collection agents calling to demand payment. There is no shortage of advice regarding how to pay down credit card debt, but for many people, the situation has gone far beyond making larger payments and asking a credit card company for a lower interest rate. Other, more permanent solutions for debt are available, including bankruptcy.
Source: fool.com, “4 Signs You’re Abusing Your Credit Cards“, Matthew Frankel, March 28, 2016