The wise use of credit is a critical skill in today’s world. Used unwisely, however, credit can rapidly turn from a useful tool to a crippling burden.

Americans aged 45 to 54, who have credit card balances, carry an average debt of $9,096 per individual.

There are a number of warning signs that you may be approaching credit problems:

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

It is important to recognize the warning signs of potential credit problems. The quicker corrective action is taken the better. Procrastinating is almost a sure way to guarantee that you may face financial difficulty down the road.

Have you already recognized you have a credit problem or are you working to fix a problem from the past? You can learn more in, “Ways to Repair Your Credit Score.”

Sources:

https://www.thestreet.com/personal-finance/credit-cards/average-credit-card-debt-14863601

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The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.

Published for the blog on October 12, 2020 by Allos Investment Advisors, LLC.