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5 Signs That You Need Debt Help

Created: On July 27, 2010 @ 12:34 pm In

Credit cards are a convenience, but carrying balances can quickly lead to unmanageable debt. Here are some signs that can indicate you’re approaching the danger zone with credit card debt:

  • You don’t know how much you owe: If you open your bills and focus only on the minimum payment amount due, you could be headed for trouble. “Debt denial” can provide a momentary escape, knowing how much you owe and where you use your credit cards can help you develop a cash based budget.
  • You make impulse purchases using credit cards: Sure, everyone deserves a treat now and again, but if you’re consistently making unplanned purchases on credit cards, they can create financial disaster. Keeping track of what you spend, where you spend, and how much you spend using credit cards is useful to identify problem spending.
  • You avoid facing debt issues and discussing them with your “other half”: Putting away unopened bills and hiding debt from your partner are definite signs that your debt is out of control. Financial problems can cause family problems and problems at work; getting help through [1] consumer credit counseling and debt consolidation services can help you establish a cash based budget and an affordable debt management plan.
  • You typically make only the minimum payments required: Your debt is no problem; you can always make the minimum payments. Creditors are required to show how long it takes and how much it costs to pay off your balance with minimum payments. Reading this information on your monthly statements provides a clear picture of how difficult and expensive it can be to pay off credit card debt with minimum payments.
  • You have little or no savings: Financial experts recommend paying yourself first by funding savings and retirement accounts before paying your bills. If your debt payments make saving difficult or impossible, it’s time to get debt help.

Debt Consolidation: A First Step Toward Debt Management

If you have good credit, you may qualify for a [2] debt consolidation loan for enough to roll all of your credit card balances into one loan with one payment. This streamlines your debt management chores, but can lead to trouble. Debt consolidation loan consequences include resuming credit card spending after your balances are paid off. This sabotages your finances by creating more debt.

Non-profit [3] credit counseling and debt consolidation services provide financial counseling, and can also negotiate affordable payment arrangements with your creditors. You are required to surrender your credit cards, but gaining freedom from credit card debt is worth sacrificing your plastic habit.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2010/07/27/5-signs-that-you-need-debt-help/

URLs in this post:
[1] consumer credit counseling and debt consolidation services: http://www.nfcc.org/CreditCounseling/counseling_01.cfm
[2] debt consolidation loan: http://www.debthelp.com/debt-consolidation/loan.html
[3] credit counseling and debt consolidation services: http://www.debthelp.com/debt-consolidation/credit-counseling.html