
Are you an average American? If so, you likely have more than $9,000
in credit card debt and the interest rates on your credit cards are
in the mid-to-high teens or higher.
Do you have any idea how long it will take you to pay off your credit
card debt if you are making 2% minimum payments and have a 19% interest
rate? Even if you stop making new purchases on credit, it will take
you over eight years!
Do you know what can happen if even a couple of your payments are
made late? The credit card companies can charge you late fees and
penalize you by raising your interest rate. How high can they raise
your rate? In some cases, they can raise your rate up to 40% or higher!
Are you concerned about your credit card debt getting out of control?
Here are some common warning signs that you may be headed for trouble.
WARNING SIGNS
1. You are surprised when credit card bills arrive
in the mail and are more surprised when you see how high the balances
have become.
2. You have no idea what the total would be if you
added up all the debt between your various credit cards.
3. You have no idea what interest rate each card
is charging you and have never tried to find out.
4. You have no idea what your credit score is or
what it would mean even if you did. In fact, you’ve never even
seen your credit report and have no idea how to get a copy of it.
5. One or more of your credit cards are “maxed-out”
(that is, charged up to their upper limit).
6. When you make payments on your credit cards you
make only the minimum payments.
7. You have never taken the time to look at your
expenses and income to see how they compare each month.
8. You don’t have enough cash for even minor
purchases and end up using your credit cards for everything.
9. You have applied for at least one additional credit
card in the last year and are checking the mail regularly for new
credit card offers.
10. You are using your credit cards for current year
purchases while you still have balances remaining from last year.
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