Is Your Credit Card Controlling You? 5 Signs Your Credit Cards Are Controlling You

Having a credit card is almost a must these days. You need them to book a hotel, rent a car, or make purchases online. “Having credit cards is smart if used properly, related to building a good credit score.” says Christopher Viale, board chairman of the Association of Independent Consumer Credit Counseling Agencies. Viale also warns that, “The pitfalls of using credit cards, not just for the purpose of building your credit profile, obviously involves the temptation for overspending.” Obviously overspending could lead to debt and possible damage to credit scores. Here are five signs that your cards have stopped being a tool to build credit or an asset in accumulating points and rewards but an instrument of debt.

1. You are struggling to make the payment: If you are struggling to make the minimum payment on your cards that is a warning sign. Make sure to make the payments on time. Think about using cash to make purchases while you are paying down credit debt.
2. You spend for rewards: The rewards that come with credit card use are perks of using the card, but you should not be spending to earn the rewards. Remember the rewards are perks for purchases you were already going to make. If you are overspending to gain a perk, it may turn out not be much of a perk if it damages your credit or your budget.
3. You stick with a sub-par product: It is a red flag that you are in over your head if you cannot qualify for cards with interest rates lower than 18-20%. Solid credit scores entitle consumers to competitive terms, so shop around to make sure you are getting a good rate.
4. You have more cards then you need: The more credit you have available the easier it is to overspend. Put a limit on the amount of cards you are going to have. If you have found a card that better suits you and your spending, put the old cards away and don’t use them.
5. You use your card as a status symbol: Credit companies have developed luxury cards to get people’s attention by using flashy colors or materials. These cards often carry high annual fees and often have high credit limits. The thrill of carrying a luxury card may soon fade if you have a bad interest rate or overspend.

If you find yourself continually robbing Peter to pay Paul, but Peter and Paul still want to be paid, then you probably need to find a way to satisfy both of them and get them off your back. Finding an experienced attorney is important in helping develop a game plan to deal with your credit card debt.

Source by Jaime G Richards