MoneyWisdom Blog

Are You in Credit Card Crisis?

Posted by MoneyWisdom Newsletter on Apr 11, 2017 4:03:54 PM

Credit crisis

Do you get a cold, clammy feeling when you think of your credit card bills? You’re not alone.

The average American household with credit card debt owes $16,061*. 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.

  • 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.

Reduce your debt burden by transferring your balances to a lower-rate Hanscom FCU MasterCard Credit Card. There’s no transfer fee, and your rate is the same as for purchases. 

 

See how consolidating debt  can help you reduce costs


* Nerdwallet https://www.nerdwallet.com/blog/ average-credit-card-debt-household/

Topics: Credit Matters, Money Management, Credit Card

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