While credit cards can be a useful item in emergency situations, or they can be rewarding when they award points that are redeemable for trips, airfare, etc., they can also be dangerous if you are not careful with your spending. Many times, people get themselves into a great amount of debt because of their credit cards use. This article focuses on four signs that you need credit counseling. Hopefully the information here will help you evaluate your credit situation and decide whether or not to seek credit counseling.
One major sign that could mean you need credit counseling is that you have long overdue credit card bills. This typically means that you either have too many credit cards and not enough money to pay them off, or that you have hit some sort of financial issue and are falling behind on your payments. Whatever the reason, it is good to get a handle on overdue bills before they get to the point of no return. The longer your bills are overdue, the more penalties and late fees you will accumulate, making it that much more difficult to pay them off.
Paying off credit card debt with another credit card
If you find yourself opening up new credit cards or using existing credit cards to pay other credit card bills off, this is definitely a sign that you need credit counseling. While this might seem like a good idea, especially with so many credit card companies offering interest free cards for a year, low interest rates for a period of time, or points that you can redeem for prizes, it is never a good idea to pay off one debt with another. If you can’t pay off the first debt, chances are you won’t be able to pay off the replacement debt either, leaving you with too many credit cards than you can handle.
Avoiding Creditors on the phone
Another sign that you might need credit counseling is when you begin avoiding creditors who are attempting to contact you. When your bills are overdue, creditors from the companies will contact you to inform you of any penalties or to speak with you about when you will be able to make your payments. While it can be frustrating or worrisome to speak to these creditors, it is important that you do. Avoiding them could cause further problems for you later down the road.
Depression due to debt
Yet another sign that could mean you need credit counseling is when you find yourself in a depressed state, or you are constantly anxious about your credit and debt issues. While it is not uncommon to feel overwhelmed and become depressed when in a great amount of debt, if you find yourself feeling depressed and not knowing what to do to help yourself, it is important to check into credit counseling. A credit counselor can help you sort through all of your debt and overdue payments and help create a plan that will not only help you to eventually get out of debt, but also feel better mentally and emotionally.