Warning Signs - $$ Trouble
Poor health Symptoms -
$ You only ever make minimum payments on your credit card.
$ You have two or more credit cards, all at or near their limit.
$ You are unaware of the amounts you owe on all your cards.
$ You spend more than you earn.
Diagnosis….. If you have two or more of the above symptoms, you should take steps to manage your credit card more wisely.
Cure…
$ Avoid store cards and get a low rate credit card to lower your interest payments.
$ Set up an auto pay to your credit card to ensure regular repayments.
$ Don’t just make the minimum payment - aim to pay off debt in 2-3 months.
$ Set up a surplus fund for emergencies, ideally one quarter of your annual income.
Emergency alert!!!
Symptoms…
$ You take out cash advances on your credit card to pay other bills.
$ Your cheques bounce.
$ You get calls from debt collectors.
$ You lie to your family and friends about your spending or hide credit card statements.
Diagnosis… If you have two or more of these symptoms, your problem is more serious and will require more drastic steps.
Cure…
$ Add up the credit card debt you pay off each month. If it comes to more than 20 per cent of your take home income, seek professional advice.
$ Financial counsellors are generally free of charge and can help organise your financial situation and set up repayment arrangements.
$ Contact your financial institution to see if it can help consolidate your debt.
This is why having a budget is extremely important. It helps you structure your money and gives you a clear outline of where your money is going. Always remember that a Budget is your number one tool to achieving your financial goals.