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

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2015 FMG Suite.

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