For Arizona residents who suspect that they might be in over their heads with credit card debt, there are some sure signs for which to look. The fact that you’re concerned, however, is a good sign. It means that you aren’t living in denial of a potential problem. Yet, before panicking, ask yourself these six questions. You can then determine whether or not your credit card debt is out of control. Early recognition of the problem may prevent financial trouble and credit score damage.
Six Questions to Help Arizonians Identify a Credit Card Debt Crisis
Any Arizona consumer who has ever experienced problems with credit card debt can tell you that problems can sneak up on you. It may seem that everything is going fine. But if your spending increases and your payments don’t, debt starts to accumulate.
For Arizonians who have a nagging suspicion that they are not managing their credit cards as well as they should, here are the six important questions to ask. Your honest answers may help you salvage your credit score before it’s too late. If your credit score has dropped, now is the time to check your credit reports.
Are your balances just going up and up every month?
Ideally, you should be paying your credit card balances off every month. This is the only way to avoid interest charges and debt accumulation. If you’re not paying your monthly credit card bills in full, you should at least whittle down the balances. Growing balances, on the other hand, are a sign of overspending.
Are any of your credit cards maxed out?
Arizona consumers with maxed out credit cards are hurting themselves in two ways. First, they are gathering debt and running the risk of missing payments. Second, even if they are paying all of their bills on time, their credit scores are dropping. This is because consumers are penalized by credit scoring models for using too much of their available credit.
Are you incapable of paying more than the minimum amounts due on your credit cards?
By only paying the minimum amounts due on high credit card balances, you are likely paying heavy interest charges over time. This means that everything you purchase with your credit cards ends up costing more. This isn’t good for anyone’s budget.
Are you always late with paying your credit card bills?
Arizonians who charge more to their credit cards than their incomes can support may discover that they have trouble making ends meet. If your budget is overstretched to the point where you are regularly paying credit card bills late, you are damaging your credit score. Remember that payment history matters most when your credit score is calculated. So a large part of maintaining a good payment history is the ability to meet all of your due dates.
Have you applied for new credit only to be rejected?
This is a major red flag for any Arizona credit card holder, especially if the denial is unexpected. If a credit card issuer turns down your application, there’s a reason for them to believe that you won’t pay as expected. It’s a hassle to get turned down for a credit card. However, think of how devastating it would be if you applied for a home or car loan and got rejected. Look at this rejection as a warning sign, and nip your credit problem in the bud before the situation gets dire.
Are you getting offers for credit cards designed for consumers with damaged credit?
If you receive one offer for a credit card meant for Arizonians with bad credit, it could have been sent to you in error. Yet, if you get two or three of these offers in the mail, you might want to investigate the potential issue. Bad credit can happen faster than most consumers realize, so take any indication of a credit score plunge seriously. At the very least, check your credit reports and credit score to find out whether or not there has been a change in your credit standing.
How Arizona Consumers can Escape Credit Card Debt and Fix their Credit Scores
When credit card debt gets out of control, there are two things that you have to do: Reign in your spending and rearrange your budget so that you can start paying down your balances. For Arizonians with astronomical credit card debt, a consolidation loan might be a viable third option.
When you begin tackling your credit card balances, you can use one of two proven strategies. Option one involves paying off the smallest balances first and getting them out of the way. Option two doesn’t come with as much immediate gratification, but it can save you more money faster. With this strategy, you take on the credit card balances with the highest interest rates attached first. This way, you’ll get a retrieve from heavy interest charges sooner than you might with option one.
Once you’ve started to take charge of your credit card debt, you’ll want to keep close tabs on your credit reports. With so much credit card activity, there is a good chance that all of your accounts haven’t been reported correctly to the credit bureaus. In fact, about 80% of consumer credit reports contain errors of some type. By finding these inaccuracies, disputing them, and having them removed, you can improve your credit score.
To make the whole process even easier, Arizona residents can now get a FREE credit repair lawyer to help them clean up their credit reports.
How Arizonians can Get a Free Credit Repair Lawyer
Don’t let errors on your credit reports bring your credit score down. At Arizona Credit Lawyers, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (480)771-6001 or contact us on our contact page.