How can consumers tell when they need credit repair help?

Many Americans may be struggling somewhat when it comes to their finances and in particular their credit card debt, and some may be wondering at which point they will need to figure out how to fix credit situations that have gone awry.

There are a number of warning signs that a consumer might be in significant financial difficulties when it comes to their credit cards, according to a report from Baltimore, Maryland, television station WMAR. Perhaps the largest indicator that you’re running into too many problems with your credit cards is that your balance keeps rising and your income drops. This can put significant strain on all aspects of your finances and make it far more difficult to afford paying your various other obligations.

Consumers might also want to think about the number of credit cards they have, and how they repay them, the report said. Some consumers have taken to applying for new credit cards so that they can pay off their old ones, and this can be a significant problem. So too can simply having too many credit cards, or only having a few but keeping them close to their maximum limits.

Time to review spending and repayment habits?

For those facing difficulties because of their credit cards, it’s a good idea to review how those accounts are being dealt with, the report said. Making small everyday payments on these accounts can add up quickly and end up costing borrowers lots of money, and many might end up borrowing more than they are able to contribute to the bill at the end of the month.

Further, it pays off to be knowledgeable about all aspects of a troublesome account, the report said. Consumers should always make sure they know exactly what they owe on their various cards, as well as the interest rates, fees and other conditions that may be attached to them.

In general, it’s a good idea to aim to keep credit card balances to about 30 percent of the overall limit on the account at maximum. This will help to ensure consumers don’t rack up too much in interest charges, and also guarantees that at least part of their credit score remains strong even as other areas may take a hit.

Posted in Credit Repair
Learn how it works

Questions about credit repair?

Chat with an expert: 1-800-255-0263

Facebook Twitter LinkedIn