Check This List for Signs You’re Inching Toward Debt Trouble
Most Americans have at least some consumer debt. In fact, accruing and, subsequently, paying back consumer debt is the only way to create a credit history that financial institutions can use when considering your application for loans to purchase large items. That said, whether due to a tragic injury or illness, the loss of a job, a divorce, or some other life event, millions of Americans end up overwhelmed by their debts and need help in moving toward a brighter financial future. If you are feeling that you’ve lost control of your debt and that it may be time to consider debt counseling or filing for bankruptcy, read on to learn some signs of problematic debt, and speak with a Maryland bankruptcy attorney for more information.
You’re only making the minimum payment on a credit card balance
Minimum monthly credit card payments are never set high enough for debtors to pay off their balance before accruing hundreds or thousands of dollars in interest charges. By paying only the minimum amount each month on multiple credit card debts, your balance will likely become unaffordable quickly.
You’re using cash from one line of credit to make payments toward another debt
By using cash that you’ve received on credit to make minimum payments on another debt, you’re only prolonging the amount of time it will take to repay your debts. Not to mention, the interest fees charged on cash advances from credit cards are often many percentage points higher than the interest on normal purchases, meaning that your debt will balloon at an even faster rate if you’re using this approach.
You use credit cards to buy basic necessities or are forced to dip into savings accounts or even an IRA to afford your regular expenses
If your monthly income isn’t enough for you to pay your monthly bills or buy basics such as groceries or gas without using credit cards, this is a sign that you are spending more than you can afford, and you need help to get your debts and other expenses under control.
If you’re in need of skilled, compassionate, and effective legal help with crippling consumer debt, contact the Maryland offices of the Bankruptcy and Mortgage Law Center at Haeger Law for a free consultation at 888-463-3520.