Do You Need Credit Card Debt Help?
Categorized: Credit Card Debt Help, Credit Card Debt Solutions | No comments
The Comfort Level Formula
The following questions are often used by financial counselors to help people identify habits that may indicate a debt problem. Be honest with yourself as you read and answer the questions on this list.
-
Do you put off paying your bills each month because you are worried that you won’t have enough money to cover them?
-
Do you usually or frequently make only minimum monthly payments on your loans?
-
Have you paid your rent or mortgage late because you don’t have enough money to pay when it is due?
-
Are you charged to the limit on several or all of your credit cards?
-
Do you sometimes find your credit card purchases denied because you are over the limit or behind on payments?
-
Do you frequently charge things intending to pay them off later—but then find you don’t have enough money at the end of the month to do so?
-
Are you juggling bills each month just to get by?
-
Do you use credit cards to finance purchases of everyday expenses, such as food, gas, or rent?
-
Have you used a cash advance from one credit card to make a payment on another card?
-
Have any of your credit cards been canceled by the issuer because you didn’t make payments on time or were chronically charging over the limit?
-
Do you avoid letters, calls, billing statements, or collection notices from creditors?
-
Have your utilities been turned off, or have you been threatened with shut-off notices, because you fell behind on your payments?
-
Have you written checks knowing they were going to bounce?
-
Do you frequently write checks for more than the balance in your account, knowing your overdraft line of credit will cover them?
-
Do you often use your credit cards to pay for items you know you really can’t afford?
-
When you feel depressed or bored do you go shopping?
-
Are you afraid someone is going to find out how far in debt you are?
-
When you are out with a group of people, do you ever pay for meals or entertainment with your credit card and then ask your friends to pay you their share of the bill with cash?
-
Do you often use your credit cards to pay for meals or entertainment for friends or business associates because you want to impress them?
-
Are you usually unsure of your financial worth at any time?
-
Is your credit rating damaged because of late payments?
-
Are you denied credit because of previous late payments or because you have too much credit already?
-
Do you worry when you apply for credit that you will be turned down because you have too much debt?
-
Must you borrow money from friends and relatives because you can’t get a loan from a lending institution?
-
Have you used most or all of your savings to pay bills?
-
Have you been through a recent divorce or death of a spouse, which hurt you financially?
-
Are you underinsured because you really can’t afford auto, home, disability, or life insurance?
-
Do you and your spouse avoid talking about money, or do you frequently argue over money matters?
-
Are you depressed or worried about your financial situation?
-
Do you find yourself in the same “money rut” from year to year?
-
Would you be able to survive financially a change in job, short-term layoff, or pay cut?
-
Do you have to supplement your income with overtime or moonlighting just to get by?
-
Do you need a cosignor to qualify for a loan?
If you answered “yes” to any of these questions, it is a good idea to examine carefully why you said yes. For example, if you answered yes to the question “Have you used all or most of your savings to pay bills?” because you recently had unexpected large medical expenses, it may not indicate a long-term problem. If, however, you answered “yes” because you needed the money in your savings account to pay the minimum payments on your credit cards, you may indeed have a problem.
This quiz is not quantitative. In other words, if you answered “yes” to ten questions, it doesn’t necessarily mean you are in more financial trouble than someone who answered “yes” to five questions. The point of this exercise is to be honest with yourself and to start looking at the reasons you’re in the situation you’re in and whether it would help you to get an objective opinion from a counselor.
Now that you have an idea of how much debt you are carrying, let’s look at strategies to reduce it.
This post was tagged with:
No comments yet.