Ways to Know You Have Credit Control Problem

Exceeding credit limit and getting into a debt is a common problem by so many individuals. Despite efforts of maintaining your budget, one or two unplanned purchases can send you to the pit of downfall. It’s just so easy to lose control of credit debts. In fact, according to Axis Capital Business Funding, a credit source providing small business owners all over the United States financial assistance, the average household carries more than $15, 000 credit debts.

How will you know then if you are already experiencing credit control problem? Here are some key warning signs that you should watch out for:

1. You are in Denial

Neglecting your bills, dodging calls from unknown numbers, not answering the door and refraining from any discussion regarding your finances may be cues that you are indeed in debt.

While you are constantly ignoring the calls, your debts may also be growing by the minute. Aside from the interest rates constantly accumulating, there is also a penalty adding to the cost.

2. You do not have a definite time stated to pay your debts

“Someday” is not included in the calendar. The lack of clarity and definite date and time prevents you from having definite plan on how to resolve your debts. Vague deals and time frame clearly defines the lack of management on your part. In order to regain your confidence in setting a definite plan for your debts, you have to reevaluate and review your finances and list down all of your debts. Schedule your income and calculate how much you can save for those credit debts.

3. You jump from balance transfer to balance transfer

Jakarta, Indonesia and Bangkok, Thailand are the primary cities having the highest number of individuals moving their balance to another. This tactic is done to alleviate interest burden and help pay off debt faster. However, a lot of people have been abusing it.

Moving a balance isn’t the same as paying it off. If you have a balance transfer card with a limited 0 percent interest rate, divide your balance by the number of months until the offer expires. That’s your new monthly payment.

4. Your personal savings are already being sacrificed

When the time comes that your personal savings, the money that you are saving for your business venture, is being “borrowed” to pay off your debts, then, you are already out of control. What happens to you after you have used up that saving to pay for your debts will directly affect your family?