So Uncle Sam’s sending a big tax refund your way. Oh, the things you can buy! Will it be a home theatre system? A flat-screen TV? The newest smart phone?
Hold up there, before that phone looks smarter than you. What we’ve been seeing recently is a lot of people with credit scores as healthy as we are, but who are showing early signs of bad credit card debt.
Is your credit exhibiting symptoms of poor health? If it is, put that big tax refund to work making it well again.
It’s easy to self-diagnose the onset of bad credit card debt if you know where to look. Are all your credit cards at or near their limits? If so, your credit may be starting to feel weak. Credit agencies — and credit issuers — like to see that you still have some credit left, after all. And if you’re having problems making the minimum payments — especially if you find yourself paying for one card with another card — your credit could be calling in sick very soon.
Your credit may also be under the weather if you use your cash to pay your minimum payment, then have to go right back to the card to pay for necessities. And what about savings? Do you have enough left over to put a little away? Experts generally say you should save at least 10 percent of your earnings.
These credit bugs often arrive together and are nearly impossible to cure quickly once they gang up. So if you find yourself facing one or more of them, that tax refund might do your credit card debt a world of good.
Scores like us don’t like getting sick, so be sure to keep an eye on our health!
Tell us about your scores: Are they looking healthy, or could they use a check-up?
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