8 Danger Signs to predict you are on a debt road
Danger signal 1
Your credit card expenses increase while your income is the same or decreases. When this happens, stop using your card and manage whatever cash you have. Stop when cash is finished unless there is a great emergency do not remove the card. Reduction in income will suffer greatly if credit card bills are added to it; stay away from shopping cards until your income is stable.
Danger signal 2
You cannot pay more than your minimum balance on the card debt; at this point it should be clear that the cash problem has begun; it’s time you have to leave your credit card and try to pay off all your bills with wise financial management.
Danger signal 3
You find yourself borrowing on one card to pay for another. This is a message that you are entering into an unmanaged debt, so take over and control all unnecessary expenses immediately. Try to pay off one card debt and use only one card which is also only in acute emergencies.
Danger signal 4
You observe that you have more than 5-6 credit cards. Ideally, you should not have or use more than two credit cards. There are many who advocate using only one temporary card if you have more you can keep the rest locked for emergencies. When you have too many operational cards, you can easily spend more money and find yourself in financial turmoil.
Danger signal 5
You find that you are increasingly using your credit for emergency payments and emergency payments including groceries bills. When you enter your regular purchase emergency payment list, you must understand that there is something serious.
Danger signal 6
Your credit card payment makes you work overtime if you see that you do not have enough funds to cover your credit card payments, which means you are expanding your income to the limit of your credit card. This is clearly a danger signal.
Danger signal 7
You are on the limit of all your credit cards. When you find yourself exceeding your credit card limit, this clearly shows you that your income is not enough to take care of your expenses and or you spend too much.
Danger signal 8
You gamble and pay off debt with a credit card. Never pay off your gambling debt with a credit card because this will truly create a vicious circle of eggs and chickens from which you will never come out.