The 10 Red Flags of Credit Card Addiction
January 2, 2018 | By Mason Roberts
Credit cards can be amazing tools that come with plenty of advantages, especially convenience. But if abused, they can easily become a consumer’s worst nightmare.
A major problem that consumers are facing today is the abuse of credit cards, and for better or for worse, credit cards are being used every moment of every day.
It’s one thing to be a bit irresponsible with credit card swiping from time to time, but it’s another thing when you’ve maxed out all your cards and you’re taking out an auto title loan just to get the monthly bills paid.
If this is you, you may be addicted to credit cards. Here are 10 red flags to watch out for when it comes to credit card addiction:
1. You’re in Debt Denial
Some people deny their debt altogether. If you owe astronomical amounts to the credit card companies and choose to ignore the reality of your situation, you might be addicted.
2. You Can’t Leave Home Without Your Cards
If you can’t even fathom the thought of leaving home without your credit cards, you may be addicted.
3. You Always Apply
If you find yourself constantly looking for new cards to apply for and immediately accept new credit card offers without hesitation, you may be addicted.
4. You Charge Your Other Bills
It makes no sense to pay a debt by accumulating more debt. If you’re using your credit cards to pay your monthly bills, you may be addicted.
5. You Ignore the APR
If you don’t even bother looking at the APR when applying for or accepting a new credit card, yup – you may be addicted.
6. You Hide Your Debt
If you’re afraid to admit the extent of your credit card debt with close family, you have a problem. For example, you should be able to share everything with your spouse and if you’re too afraid to tell them how much you owe, this is a huge red flag for credit card addiction.
7. You Engage in “Good Deal” Shopping
Buying stuff you don’t need simply because it is on sale is a bad financial habit, especially if you are going into credit card debt to do it. If you swipe your credit card to buy something that’s a “good deal”, you may have a credit card addiction.
8. You Have Little to No Money in the Bank
If you have next to nothing in the bank, yet your credit card balances are through the roof, you probably have an addiction to credit cards. These numbers should be reversed, with plenty in the bank and little to no credit card debt.
9. Your Debt Gets Increasingly Higher Over Time
Your credit card balances should creep up little by little, then go back down when you pay them off at the end of the month.
Your credit debt should never be allowed to grow past your own financial means.
If your credit card debt is climbing higher each month, it’s a sure sign of a credit card addiction.
10. All Your Cards Are Maxed OutIf all or most of your credit cards are maxed out, odds are you have a credit card addiction. The standard rule of thumb is that your credit card balances shouldn’t exceed 30% of your credit limit.
How an Auto Title Loan Can Help Eliminate Your Credit Card Debt
From big-decision purchases to quick errands and everything in between, credit cards are being swiped at record levels, and just about everybody’s doing it.
Chances are, you have at least more than one credit card like the majority of Americans, and like the overwhelming majority of your fellow citizens, you probably owe more than you can afford to pay off right now.
If more than a couple of these red flags apply to you, you may want to consider getting some professional help from a credit or financial counselor.
Even if traditional lending isn’t the answer, an auto title loan may give you the breathing room you need to consolidate your debt. There are also plenty of resources available to help you manage your debt and get your credit card balances and behaviors in check.
There are also credit consolidation services that are available to work with you and your creditors to get your monthly payments and balances under control.
It may be difficult, but it is a crucial first step toward building a solid financial future without the weight of credit card debt.
Take the first step toward financial security today without relying on an auto title loan, and break the paycheck-to-paycheck cycle today!