According to a recent CNBC report, 86 million Americans worry their credit cards will be declined when trying to make a purchase of $100 or more.
Meanwhile, those same consumers continue applying for more credit. According to a Federal Reserve Bank study, there are more than one trillion dollars in outstanding credit card debt in the USA. The average American household has a $7,000 balance and spends $1,140 on annual interest payments.
Long story short, a lot of people are hooked and many of them have no idea.
With that in mind, the following behaviors are signs you’re addicted to debt.
1. You Routinely “Hope” Your Card Will Work
If you’re standing at a checkstand, buying a bunch of stuff you don’t really need and you’re unsure as to whether or not the transaction will be approved — you’re hooked. After all, if you were in control, you wouldn’t be using a credit card to buy something frivolous. Further, your balance would be well within your limit so you wouldn’t have to wonder if your card would go thorough.
2. You Can Barely Afford Minimum Payments
You’ve long ago given up on paying your balances in full each month. That’s no longer even a remote possibility. In fact, you’re now struggling to make the minimum payments because your cards are always right at — or over the limit.
3. You’re Using Cards for All of Your Spending
All of your discretionary cash is going to meet the minimum payments on your cards. So you have to charge the amount you just paid to buy food, fuel and other essentials to get you back and forth to work and keep your family fed.
In other words, you’re using your credit cards like debit cards.
4. You’re Hoping For A Miracle
Lottery tickets, the death of a loved one or finding a bag full of money figures heavily into your plan for paying off debt; but you’re just as likely to buy a new car instead.
5. You Apply For Every Offer You Get
Despite your indebtedness, if your credit rating is still pretty strong, you’ll continue to get pre-screened and pre-approved card offers in the mail for a while.
If you find yourself transferring a balance to a new card in order to free up an old card — without any consideration for the terms of the new card, or pondering how much deeper of a hole you’re digging, it’s past time to get in touch with a debt relief company to help you find a way back onto the path of solvency.
Before you choose one though, take some time to review some background information like these Freedom Debt Relief reviews to ensure you’re working with a solid company.
6. You’re Avoiding Creating a Spending Plan
Committing to a prescribed course of action means you’ll have to stop and take a look at where your finances really are. This is why you don’t balance your checking account or look at your card statements either. If you did, you’d have to get eye to eye with the hard cold truth of what you’ve done to yourself. You know this will be a straight up buzzkill, so you don’t do it — and continue spending.
So, there you have it; these six behaviors are signs you’re addicted to debt. Here’s the thing though, you probably didn’t realize you were hooked on debt per se. If anything, you thought you were simply dependent upon credit cards. However, within that dependence, you’re overlooking what the cards are making you do; sink deeper and deeper and deeper — into debt.