Danger Signals

The Danger Signals of Credit Trouble

How can you tell when you are under financial stress-getting in over your head? The easiest way to solve credit problems is to tackle them early before they get out of control. Any of these warning signs may mean that you are deeper in debt than you should be:

• Being forced to make day-to-day purchases on credit
• Being unable to pay your monthly bills on time
• Pay only interest or service charges monthly and do not reduce your total debt over many months
• Consistently working overtime or an extra job to keep up with your expenses
• Needing to borrow money to pay off another debt
• Letting your credit card reach its spending limit
• Receiving calls or letters from credit agencies asking for payment
• Using your savings account to pay for regular living expenses
• Being denied credit or having your credit revoked
  

If you spot any of these warning signs, you need to change your financial habits and avoid the risk of jeopardizing your good credit history.