Credit card debt can be a useful indicator of how well you are handling your debt load. Below are five signs that your credit cards are pointing you towards bankruptcy:
- Your credit cards are maxed out. If your credit cards are charged to their limit, then it is a clear sign that you may be heading towards bankruptcy. Maxed out credit cards are clear indicators that you have been relying heavily on debt and that you are unable or unwilling to pay off the balance in a timely manner.
- You miss payments or pay late. Late and missed credit card payments are another sign that you may be heading towards bankruptcy. The inability to pay your credit card bills and pay them on time is a sign that you are financially stressed and may need bankruptcy relief.
- You refuse to open your credit card bills. If you avoid reviewing your credit card bills on a monthly basis then it is a definite sign that something is amiss and that you could soon be looking at a bankruptcy filing.
- You use cash advances from one credit card to pay another. Robbing Peter to pay Paul is another very clear sign that you are probably on the road to bankruptcy. Remember, credit cards are not cash; they are debt instruments which must be repaid with interest. Using one credit card to pay another is a fool’s game that only ends with more impossible to repay debt.
- You consider applying for new credit cards so that you can better juggle the debt you have on your existing credit cards. When you get the feeling that you need more debt just to manage the debt you already have, it is a sure sign that you may need to file bankruptcy soon.