What to Do When You're in a Credit Crisis

Credit crisis

Do you get a cold, clammy feeling when you think of your credit card bills? You’re not alone. According to Experian, the average American carries a credit card balance of $6,354. Heightened anxiety is only one sign that you may have bitten off a bigger bite of plastic than you can chew.

Ask yourself the following questions to determine if you’re in over your head with your credit cards:

  • Do you avoid creditors by not answering the phone?
  • Do you ignore bills by stuffing them into a pile or box unopened?
  • Do you pay for other charge cards, food, or utilities with cash advances or credit?
  • Is more than 20% of your net income committed to revolving debt payments?
  • Do you regularly bounce checks?
  • Have any creditors closed your accounts?
  • Do you skip certain bills every month?
  • Do you make only minimum payments on credit cards while continuing to incur charges?

If you said yes to any of these questions, your credit habits may be doing more harm than good. Start breaking the cycle of debt by reviewing your monthly spending plan, then work on adjusting your expenses and/or increasing your income.

Talk to us about a credit card balance transfer. Moving debt from a high-rate card to a lower rate will slash your finance charges and help you pay down your debt.

Most importantly, stop adding new charges on your card immediately. Feeling overwhelmed because of credit card debt is natural, but with commitment and a step-by-step approach, you can turn crisis into conquest.

Others are reading:

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What You Need to Know Before You Pay Your Credit Card Early

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