Wednesday, July 7, 2010

10 Tip-Offs You're Heading for a Debt Disaster

While browsing tonight I stumbled at article that strike me through hahaha... Alarming and we need to know about tip-offs you're heading for a debt disaster. Read this folks, it helps a lot.

Here are the instances with perfect tips that can help us!

1. Your bank account is consistently overdrawn.

Tip: First, stop the bleeding. Ask your bank for overdraft protection for your checking account. But don't stop there: Track your expenses and find out why you've got bigger withdrawals than deposits.

2. Your credit card balances are rising.

Tip: While periodic fluctuations in your loan balances are normal, if they're consistently rising, you've got to stop, examine your spending and find out why.

3. You're only making minimum payments on your credit cards.

Tip: ALWAYS pay more than the minimum. If you can't, you're likely already heading toward a debt disaster. Talk to a credit counselor.

4.You and your partner are arguing about money.

Tip: Agree on a budget and a spending allowance, if necessary. Then stick to it. And if money is an issue, communicate about it more often, not less often.

5. Your savings account is busted.

Tip: When you get paid, pay yourself first. Use automatic withdrawal to take 10% of your check and stash it in a savings or money market account.

6. You're juggling your monthly bill payments.

Tip: Lose the cable and any other luxury item on your "to pay" list. In tough times, stick to the staples: home, car, groceries and utilities. You might not think about it, but 20 years ago, nobody had an Internet bill or a cell phone bill. Cut out everything until your income is greater than your out-go.

7. You don't know how much you owe.

Tip: Pay as much attention to what you owe as what you make. Don't keep your debt out of sight — or out of mind.

8. You're keeping secrets.

Tip: Come clean. Keeping debt a secret won't improve your situation. But it will keep you up at night.

9. You've got a credit card collection.

Tip: Even allowing for specialty and cash-back cards, you don't need more than three. Pay off the rest and close the accounts. And when you close an account, do it right.

10. You're near the limit on your credit cards.

Credit cards should be for convenience only, not as the source of a continual high-interest loan. If you're using more than 30% of the available balance, you could be hurting your credit score and heading for a problem.

My advise: If you can avoid credit card, please keep away! Or if you have make sure to spend it wisely.

Special thanks to the source.

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