It may be time to pursue responsible debt settlement immediately if you notice these few signs. Sometimes, it can be hard for us as humans to admit we have a problem or an addiction. For some, that involves spending. Retail therapy is therapeutic for many, and unfortunately, comes with some financial side effects like mounting debt and unmanageable interest rates. Debt settlement is something we need to consider and commit ourselves to if we want to move past a life under debt and interest rates. If you love to spend, you can do that in the future. Right now, you are in desperate need of debt settlement.
Here are 5 signs that debt repair is in your future:
1. Maxed Out Cards
Maxed out credit cards are a sign that you haven’t been paying your balance in full each month. If you have multiple maxed out cards, that only compounds the problem, making it more difficult to pay off your credit card balances. If you don’t have an emergency savings, you are left without a source of funding for an emergency. One maxed out card can be enough, but if you’re staring down 2 or more, it’s definitely time to settle your debt.
2. Minimum Payments Only
If you can only manage to cover the minimum payments on your credit cards today, that is not a good sign. It means your disposable income can’t settle the amount you are spending each month. Your budget is incorrect and your bank account is paying for it. A sure sign your debt is out of control is being able to barely cover a fraction of what you swiped that month. As you continue to only pay minimum balances, your debt is getting worse.
3. Late Payments
Missed credit card payments only make your credit card situation worse. Late payments increase the amount you have to pay to get caught up and have a negative impact on your credit score. If you miss two payments, your interest rate increases, making it impossible to catch up with payments. If this has happens to you, you need to seek the support of a professional immediately.
4. Paying Debt With Debt
If you’re using cash advances, balance transfers, or payday loans to settle your debt, that is not good. Not only are you not really making any progress to pay off the debt, you are creating more debt by borrowing to settle the debt. This kind of debt settlement is just compounding the problem.
5. Credit Card Necessities
If you’re relying on credit cards to pay off necessity items, like food and paper towels, then your debt has officially destroyed your life. If you continue using your credit cards for regular purchases, not as part of a strategy to earn more rewards, eventually you’ll run out of available credit.
And of course, if your credit score starts dropping to the bottom depths of credit score land: you are officially stuck in an uncomfortable situation. The good news is: you don’t have to stay there forever.
Credit scores, credit repair, and debt settlement can get you back into healthy spending terms. You just need patience to the get there.