Are you headed for debt trouble without even knowing it? John Ulzheimer joins this web exclusive video to help you identify the signs that you may be headed into the hole.
(1) You need to get help with your debt if it is having an adverse effect on your credit score. If your debt is approaching the credit limit on your card, it is without question hurting your score. Thirty percent of the points in your score come directly from the amount of debt you are currently carrying. The optimal level of debt to carry is 10 percent or less of your credit limit, although that is notably a difficult thing to do.
(2) If you find it difficult to make the minimum payments on your cards, mortgage, student loans or other types of debt then you should reassess your situation – but that’s common sense.
(3) Finally, if the creditors change the terms of your loans and you can no longer afford to make your payments, it’s time to look over your debt and reassess your budget. You can take the first step by plugging your numbers into Carmen’s Budget Calculator.