Base on several financial institutions rules, the most important in getting the debt is our debt value or good report cards. It can be sure if we have good payment record, there are will many financial institutions that offer us loans and credit cards. In this case [ if we face it] we must be careful and must be manage our finance so we are not too much credit and consumer debt..
There are several ways to find out whether we have enough or excessive or less in a credit card or maybe we caught up credit card debt.
Below statements are questions and only your self that can answer and know your position in this case
1. Are you uncomfortable and confused with your financial situation?
in this case, financial problems have always haunt you and could result in deep stress. This is dangerous situation for your mentality and must be resolve it. You have to be realistic when faced with such a situation. this dangerous situation is must be over come by the best ways. Thing you can do, just talk to a debt counselor at the right time.
2. Check your data, are you always paid your credit card bill with a minimum payment amount?
If you do it, that mean you have big problems in you cash and you begin to have problems in managing your debts because your cash flow deficits require you to pay credit card debt with minimum payments. If you receive the monthly credit card statement listing, better you not only make the minimum monthly payment. Problem with the simplicity of what. The minimum monthly payment, in most cases, these payments would cover the accrued interest in the amount of your balance only Sometimes even the minimum payment to cover the minimum balance. Even if you have the card and receiving costs, the minimum payment is not likely that most of the reporting. You should always pay more than the monthly minimum.
3. Try to remember, if you always pay with a credit for every purchase of consumer goods?
If the answer “yes”, that mean in fact you are not able to buy the goods but demanding it. This bad habit must be destroy from your mind, cause it would hurt and weaken your own finances.
We must realize that the use of credit can also lead to financial ruin if not used wisely. Having a credit card as we have the tools to take on debt, such as having a pre-approved loan in your wallet. Take advantage of credit cards to purchase daily necessities such as gas and groceries can be smart ways and easy ways to save your finance. But we must do it very careful and use it no more our daily need it. And you must remember that all bills must be paid within a certain time so you do not pay interest on credit cards.
4. Can you set aside at least 15% of gross your income for savings and long term investments?
if your answer is “can not”, it means a warning for you to reduce your credit and start saving for your future. Or it also mean that you are not worthy to have credit cards and loans. We must be careful with this case, this case can mak your finance in bad situations.
5. Have you face a deficit in terms of income and expenses every month?
Cash Flow Deficit illustrates that the expenditure is greater than your income. actually means you are financially not able to buy new assets or have a new credit card.
Using several credit card is the best ways to make plan. Credit card interest rate setting can cause your bank account each month is reduced. With mortgage interest expense on average 16% of each card, pay only the minimum payment each month can keep you in debt for almost 20 years. That is very dangerous.
6. Do you have consumer debt more than 10% of your monthly income?
Just for your info that your excess consumer debt shows that you are not careful in spending your money and it mean you have bough much goods that are not needed.
7. Remember, Have you ever received a penalty or get a letter of warning regarding charges on your credit?
If the answer is “yes”, that mean you should immediately reduce the number of credit cards that you have then looking for good financial consultant to help manage your finance.
The most effective method to save our finance and reduce credit card debt is by closing a credit card.
From the statements above, you can estimate and guess your position whether you are really in danger in the case of debt. Do a few things immediately and improved your financial if you are trapped in credit card debt. Do not let yourself trapped in the syndrome “buy now, pay forever”. Avoid it as early as possible and save your financial.