- April 5, 2014
- Category: Latest
Debt becomes a serious problem when you fail to use your credit card wisely. It becomes an even more problematic situation if you don’t make the payments on time. The recent report from the Federal Bank of New York made it clear that the American economy is dangerously overleveraged. It seems like people are on a borrowing spree without any consideration to their ever increasing credit card debt. If you don’t realize your increasing debt soon then it can very well spell disaster.
There are ways to manage debt but in every method you’ll be required to show patience and perseverance. Understand that excessive debt won’t just disappear, nor will it decrease if you leave it unattended. The longer you take to clear your debt, the more you will end up paying in interest.
Warning Signs That Your Debt Level May be Headed for Trouble
1) Frequent Calls from Collection Agencies or Creditors:
If you have been receiving a lot of notices and phone calls from collection agencies and creditors then it means one thing – you need to start making payments as your debt ceiling has reached and it’s making your creditors nervous.
2) Working Overtime to keep up with Spending:
It’s not uncommon for people to work double shifts but if you are doing it just so that you can cope up with your spending then it means that you need to slow down. Take a break and assess your spending and your existing debt. You still might be required to work double shifts in order to repay the debt but you definitely need to hit the brake on spending.
3) Using your Savings to Cover Daily Expenses:
Savings can be your life saving raft in financially estranged times. But if you find yourself digging deep into your savings account just so that you can continue your existing life style then it means that you are earning less and spending more. This is most probably going to bury you beneath a huge pile of debt.
4) Being Denied Credit when you Applied for another Loan:
This can happen to anyone with a bad credit card score. If you have been denied credit then you need to sit down and take a look at your credit card statements. Figure out how you ended up in this situation and make a plan recover from the debt and to improve your credit card score. A bad credit card score will let you down when you’ll really need some urgent credit.
5) Being Called by some Debt Relief Service Company:
Debt relief companies try to lure in consumers with bad credit card scores and huge debts. They know that such consumers would be very anxious to find easy means of reducing their debts. If you get a call from any of such companies then you need to make a plan and change your lifestyle to a more moderate one. Do not respond to these companies, instead you must immediately start to assess your financial situation and come up with a plan to repay your creditors.
Brianna Wilson is an associate at National Debt Relief, a BBB accredited business that has helped thousands of Americans resolve credit card debt problems.
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