Financial disasters don’t typically happen all at once — they build over time. First, you may find yourself running short more than usual and purchasing more than you can afford with your credit cards. Then, this behavior may lead to larger financial problems that can damage your credit. While credit repair companies such as Quality Credit Repair can aid you after the fact, keeping an eye out for these warning signs can help you avoid this unpleasant situation altogether.
Maxing Out Credit Cards
Maxing out credit cards or going over your limit is a sure sign of a looming financial disaster. Even worse, your credit score can take a hit if you utilize more than 35 percent of your credit limit. Rather than taking out new credit lines, try to minimize spending by creating a budget.
Asking Loved Ones for Loans
Every time you ask friends and family members for loans, you put both your relationships and finances at risk. Seeking help from loved ones, or worse yet, seeking help and not paying back the loan, is a major warning sign of substantial financial problems.
Using All Your Savings
Lots of people lack the savings to handle major emergencies, and even if you do have that padding, using it all points to major money troubles. Likewise, a failure to save at all leaves you vulnerable should you encounter one of life’s many problems, like broken appliances, necessary car repairs, or a global pandemic.
Getting Collection Calls
If your bank or credit card company keeps calling and asking for payment, you’re heading toward imminent financial doom. Fortunately, most institutions are willing to work with you on a payment plan as long as you address the underlying problem behind your financial troubles.
Living Paycheck to Paycheck
Do you find yourself having to stretch funds or do without them between paychecks? This is a big warning sign that all isn’t right with your financials. Take stock of what’s going on in your life, including your employment situation and money management skills, and make positive changes that leave you with more money in your pocket between paydays.
Financial problems don’t just sneak up on you — they build up over time and have the potential to ruin both your credit and relationships. If you find that you need reliable help, contact Quality Credit Repair for trusted credit counseling services in Philadelphia.