Do You Have Too Much Credit Card Debt?By Caitlin in Credit
Credit cards can be both a blessing and a curse; it all depends on how you use them. On one hand they’re great for making large purchases, creating a credit score for yourself and are even great for when you need a little extra help until your next paycheque. But it’s when you start to completely rely on them that they become a curse. Paying for everything and anything with your credit card when you know you don’t have the money to pay off the balance at the end of the month can become a serious problem. What’s even more serious is that most people don’t even know that they have too much credit card debt.
Do you have too much credit card debt? Are you addicted to your credit cards? Or are you unsure of how to answer that question? We’ve complied 12 reasons why you might have too much credit card debt.
1. Denial is your best friend
Denial is a powerful resource for those with too much credit card debt. Do you find yourself constantly choosing to forget or ignore the fact that you have credit card debt especially when you go to charge something? Do you purposefully not open your credit card statements? Do you lie to the people in your life who care about you because you don’t want them to know about your credit card debt?
If you have answered yes to all or most of these questions then you’re probably in denial about your credit card debt and need to take control of it now.
2. You choose to not look at your balances
While you are completely aware that you do in fact have a credit card and it probably has a pretty large balance on it, you never double check it. You always pay the minimum so the total balance doesn’t really matter to you.
3. Minimum payments
Speaking of minimum payments, the reason why you automatically make the minimum payment every month without looking at you balance is because you can only afford the minimum payment. This is probably one of the most common issues with credit card debt; people don’t realize that the minimum payment is simply the interest so you will never be able to pay off your balance completely.
4. Your budget is strict
After you’ve paid your rent, utilities, car payment and the minimum payments on all of your credit cards you have no money for the fun things in life, like going out with your friends. But of course you still want to be social and go out so you charge everything to your credit card without a second thought. Not only to do have to charge the fun stuff you also have to put things like gas for your car and even groceries on your credit card, thus only adding to your debt.
5. Your savings do not exist
Saving money is not an option for you because you have none. Once you’ve paid for all your monthly bills and the minimum payments on your credit cards there is nothing left to save. This will of course only make your credit card debt worse as you will have nothing to fall back on in case of any kind of emergency, financial, medical or otherwise.
6. A second job is sometimes your only option
Sometimes you have to work a second job or take overtime hours at your first job to help pay off your debts.
7. Maxed out
Using your credit cards until they are maxed out will only cause more problems in the future, there are lots of hidden fees and the interest that such a large amount of debt acquires will become a burden that your won’t be able to deal with.
8. Addicted to your plastic
Are you addicted to your credit cards? Being unable to leave your credit card at home and having to add more to it once you pay off a part of your debt are both signs that you might be addicted to your credit cards and are serious reasons why it’s so hard for you to get out of debt.
9. Using one card to pay off another
If you are taking cash advances from one of your credit cards in order to pay off another you have too much credit card debt. This is particularly troubling as it will be almost impossible for you to pay off any of your credit cards with this method.
10. You’re being rejected for new credit
You’ve tried to apply for a new credit card because your other ones are maxed out but you still need to buy gas and food. The amount of debt you already have is why too high and you keep on getting rejected.
11. Your payments are always late
Every month you try to scrape enough money together by working extra hours and taking cash advances but you still can’t seem to make your payments on time. Late payments will affect your credit score and are hard to recover from.
12. Can you pay it off?
Being able to pay off your debt within a year is important and if you’re unable to do this you need to get help. Ask yourself if you can remember the last time any of your credit cards had nothing charged to them?
Time to get help
If all or most of these apply to your life then it’s time to take control or seek help. Too much credit card debt will haunt you for a long time and it will stop you from being able to achieve goals and move forward in your personal life. Getting one personal loan to cover the cost of all of your credit cards is a great way to solve your credit card debt problems right now. Loan Canada wants to help you get your financial situation back on track and we will work with you to find the perfect solution. The fast and simple application process will allow you to get a loan as soon as possible and thus you’ll be able to take control over your credit card debt right away. Once you pay off your credit card debt you’ll feel like a new person because you’ll only be making one simple payment to Loans Canada instead of juggling several different payments to several different credit card companies every month.
Apply for a personal loan from Loans Canada today and take back control of your finances and your life.