5 Signs That Signal You Need Credit Card Counseling

By , Posted on Aug 23, 2021
General Debt. credit card
General Debt. credit card

In most cases, people find themselves in tough financial situations with credit cards because of unpaid monthly dues. Without credit card counseling and sound financial management, every unpaid monthly balance piles up as finance charges that would yield to a higher interest rate being charged on their credit card accounts. Consequently, they end up paying the finance charges that make the bulk of their debt and the cycle goes on and on.

If you feel like you could use some assistance dealing with your balance sheet, know that you have plenty of company. Just like our name suggests, at DebtHelper, we can help you with your debt.

Do you need credit card counseling?

Signs You Need to See a Certified Credit Card Counselor

  1. You Make Only Minimum Monthly Payments

Each time you receive your credit card bill, it typically shows you three amounts you can choose to pay. These include the minimum due, the statement balance, and the current balance. Paying the minimum due or the smallest amount of money each month allows you to keep your account in good standing.

Alternatively, the statement balance refers to the total balance on your account for that specific billing cycle. Lastly, the current balance refers to your most recent bill’s total amount including any recent charges. However, financial experts recommend paying the statement balance of multiple credit cards in full each month so that you can avoid interest charges.

Making at least the minimum payment and carrying a balance from month to month is not ideal. Besides racking up interest charges, it could take years before you pay off even the most modest of balances if you pay just the minimum. Thankfully, a credit card counselor can help you determine a plan of action to improve your personal finances.

  1. Debt is Creating Tension in Your Home

You know that you’re heading toward debt that you can’t handle on your own when stressful conversations with your spouse always revolve around money. This is a sign that it would be beneficial to reach out to an impartial non-profit debt counseling agency. They can help you come up with a strategy to fix the problem and move forward.

  1. You’re Relying On Credit

Having a credit usage ratio of more than 50% means that you’re overly relying on credit purchases to cover regular expenses. If you don’t have enough disposable income to pay your bills, you’ll end up maxing out your credit cards and damaging your credit score. Unless you’re willing to raise your credit utilization ratio, consider reaching out to a credit card counselor.

  1. You Rely Largely on Balance Transfers

Do you try to get reduced interest rates by frequently transferring balances from one credit card company to another? You’ll want to speak to a credit card counselor who can help you make substantial and consistent payments so that you can clear your credit card balances in a timely manner.

  1. You’re Late on Credit Card Payments

Besides showing financial mismanagement, failing to pay your credit debt or paying it late each month will also lead to poor credit scores. Additionally, late credit card payments can also limit your access to more credit.

Unless you fix this problem, you’ll have a hard time buying a house or a car. A credit card counselor can help you find ways to pay off your monthly credit card balance and regain your fiscal footing.

a smiling man who's had credit card counseling

Do You Need Credit Card Counseling?

There is a way out of that deep, dark hole of credit card debt. Reach out to the team of financial experts at DebtHelper is here to get you the credit card payment relief you need now. Contact us today to schedule your free credit counseling session with a certified credit counselor.

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