CASH FLOW & DEBT MANAGEMENT | Spotting Credit Trouble

Almost half of American households carry a balance on their credit cards, and the average debt totals $15,863.¹

The wise use of credit is a critical skill in today’s world. Used unwisely, credit can rapidly turn from a useful tool to a crippling burden. There are a number of warning signs that you may be approaching credit problems:

There are a number of warning signs that you may be approaching credit problems:

  • Have you used one credit card to pay off another?
  • Have you used credit card advances to pay bills?
  • Do you regularly use a charge card because you are short on cash?
  • Do you charge items you might not buy if you were paying cash?
  • Do you need to use your credit cards to buy groceries?
  • Reluctance to open monthly statements from creditors?
  • Do you charge more each month than you pay off?
  • Do you write checks today on funds to be deposited tomorrow?
  • Do you apply for new credit cards so you can increase borrowing?
  • Receive late and over-limit credit card charges?

It is important to recognize the warning signs of potential credit problems. The quicker corrective action is taken the better. Procrastinating is almost a sure way to guarantee that you may face financial difficulty down the road.

1. Nerdwallet.com, 2015

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