Using credit is convenient- and in some cases necessary (for instance if you are purchasing items online). But at what point does this tool of convenience become a tool of dependence? Credit use to some extent is a habit. Don’t make it a bad habit! Are you addicted to credit?
You might be addicted to credit if it never even occurs to you to save up before you purchase an item. You see. You want- and before you know it, your wallet is open and your card is out.
It’s all fine and dandy to do this, but only if you are paying your balance off every month. You may want to exercise a little restraint now and then when you are shopping- if for nothing else to prove to yourself that it can be done! Wait now- buy later in cash!
You keep applying for cards
Nothing contributes to a recipe for debt disaster than carrying multiple cards. If you are frequently opening up cards, now is the time to reverse that particular habit. It may seem like a good idea at the time (i.e. a purchase discount, reward points etc. just for opening a card) but this is short term thinking.
As a rule, try to only have one or two cards in your wallet. Pick lower interest rate cards, and ditch the rest. Centralizing your credit use will not only help you track your spending, it will let you pay off more of your credit purchases more quickly because you are in theory paying less out towards interest.
The payment challenge
You may be addicted to credit if you are only able to make minimum payments on your cards. It’s also a bad sign if you are borrowing from one card to pay another.
Are you secretive about your bills and/or your purchases? Does your credit use impact your relationship with friends and family?
All of these are very compelling reasons to take a step back and consider if your credit use is healthy.
If you’re your credit card spending is out of control and you are beginning to take on debt, it may be time that you asked for help. Give us a call, 1-888-826-5898 today to speak to a trained credit counsellor and find out how you can get your budget under control. You can also try our Free Debt Analysis online and a counsellor will reach out to you.