Money Read Time: 4 min

Spotting Credit Trouble

American households carry an average revolving credit card balance of $7,876 from month to month.1

The wise use of credit is a critical skill in today’s world. Used unwisely, credit can rapidly turn from a useful tool to a crippling burden. There are a number of warning signs that you may be approaching credit problems:

  1. Have you used one credit card to pay off another?
  2. Have you used credit card advances to pay bills?
  3. Do you regularly use a charge card because you are short on cash?
  4. Do you charge items you might not buy if you were paying cash?
  5. Do you need to use your credit cards to buy groceries?
  6. Are you reluctant to open monthly statements from creditors?
  7. Do you regularly charge more each month than you pay off?
  8. Do you write checks today on funds to be deposited tomorrow?
  9. Do you apply for new credit cards so you can increase borrowing?
  10. Are you receiving late and over-limit credit card charges?

It is important to recognize the warning signs of potential credit problems. The more quickly corrective action is taken, the better. Procrastinating might result in financial difficulty down the road.

1. NerdWallet.com, January 10, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Rebalancing Your Portfolio

Rebalancing Your Portfolio

Over time, different investments' performances can shift a portfolio’s intent and risk profile. Rebalancing may be critical.

Social Media: #NewestBusinessLiabilityRisk

Social Media: #NewestBusinessLiabilityRisk

Social media may be a modern imperative for businesses looking to grow and build their brand, but it also introduces risk.

Countering Counterfeit Currency

Countering Counterfeit Currency

Combating counterfeiting remains core to preserving the integrity of the nation’s money.

 

Have A Question About This Topic?







Thank you! Oops!

Critical Estate Documents

Sound estate management includes creating financial and healthcare documents. Here's an inside look.

Keep Your Umbrella Handy

Umbrella liability can be a fairly inexpensive way to help shelter current assets and future income from the unexpected.

Mortgages in Retirement

Explore the benefits and drawbacks to paying off your mortgage prior to retirement with this article.

View all articles

Capital Gains Tax Estimator

Use this calculator to estimate your capital gains tax.

Potential Income from an IRA

Estimate your monthly and annual income from various IRA types.

Self-Employed Retirement Plans

Estimate the maximum contribution amount for a Self-Employed 401(k), SIMPLE IRA, or SEP.

View all calculators

Saving for College 101

Here’s a crash course on saving for college.

RE: Retirement

How does your ideal retirement differ from reality, and what can we do to better align the two?

When Do You Need a Will?

When do you need a will? The answer is easy: Right Now.

View all videos