If you think that because you pay the minimum on your credit cards each month and on time that you will one day reach that zero balance, then think again. If you are doing any of the below then you may never pay off your credit cards.
5 Signs You Won’t Get Out of Credit Card Debt
Just the Minimum
Paying just the minimum required for your credit cards is the slowest way to get out of debt. This is because the minimum will not make a bigger enough dent in your debt to get rid of it.
If you are carrying around a high balance, then it could take you years to pay off your credit card at the minimum payment rate and also the interest is just going to add up over the years.
You’re Still Buying
If you are using any available credit that you have as soon as you make your repayment, then you will probably always have a credit card balance. If you are stuck in a cycle of using your credit cards, then you may never pay off your credit cards. This is one habit that you will need to break if you want to be debt free.
You’re Maxed Out
The hardest credit cards to pay off are the ones that are maxed out and this is made even harder if you are only paying the minimum on your credit cards. The majority of your payment will go towards finance charges, which can be expensive. If you have multiple maxed out credit cards, then it is only going to be harder to pay them off.
Do You Know What You Owe?
Not knowing what your debt is, is a risky way to live. You are not able to make any sound financial decisions if you are not aware of what your finances look like as a whole. If you are not facing your debt, then you probably also making other bad choices that keep you in debt.
Spending More Than What You Make
The fastest way for you to get into credit card debt is to live above your means. The problem here is that it will just lead you to max out all of your credit cards, which does not make it sustainable and it’s just a bad financial move. You will never have extra money to pay off your credit cards if you are spending more than you have.
These are signs that you will never pay off your debt, but if you change your behaviours and change the way you use and see your credit cards then it is possible to tackle that debt. You will need to increase your payments to more than the minimum and stop using your credit cards, live within your means and face your debt head on.