How To Tell If Your Credit Card Is A Problem For You

The easiest way to tell if you have a credit card problem is to take a look at your last monthly statement where it says “Balance”. If your heart skips a few beats and you break out in a cold sweat, you can be fairly certain you have a credit card problem.

Let’s have a look at the main indicators that something may be going wrong.

Common credit card problems:

1. Your balance makes you weep – If your balance is a debt that you don’t have the cash to pay off, you have a credit card problem. Paying off the minimum amount each month does not mean you are handling things. The interest charged on the unpaid part of your balance may actually be more than your minimum payment. If so, the maths is simple: your debt is growing.

2. Your credit card never leaves your hand – If you venture out to buy something, and you won’t even know what it is until you see it, and you can do this because your credit card allows you to, then you can consider you have a credit card problem. Credit cards should ideally be a source of finance when you are caught short of cash and you have to make a necessary purchase, or you need to make a large purchase and you don’t want to carry that amount of cash with you for reasons of safety. If you are actively looking to spend on your card on a daily or weekly basis, unless your name is Rothschild you are highly likely to run up a debt.

3. You spend five minutes deciding which card to use – If you have to run your finger up and down a collection of cards, thinking which pretty coloured one you haven’t used yet this week, then you have too many cards. This credit card problem can create multiple debts that you are not even aware of until month-end. You should also be aware that credit card applications are all logged on your credit history, whether you are approved or refused.

4. You guard your credit card statement like it’s a state secret – If you are embarrassed or ashamed about revealing the balance on your credit card statement to anyone else – especially your partner – you can assume you have a credit card problem.

5. Your cards are maxed out – If you have reached the credit limits on your cards, then you will already have a credit card problem in the form of a long-lasting debt which will also hit your credit rating in a negative way.

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