Welcome back. We are currently discussing questions to ask yourself in effort to determine if your credit card spending could be leading you to financial ruin. The first questions can be found in part 1, and the third question to ask yourself is:

Have you maxed out or nearly maxed out any of your credit cards? If you have maxed out a credit card or have opened multiple credit cards to avoid a max-out, you are probably relying too heavily on them to get by. Not only does this create an even bigger debt problem, it also has a negative impact on your credit score. The vice president of a company that assists consumers with debt issues said you should only utilize 35 percent of your available credit limit, otherwise it suggests that you’re living beyond your means and your credit score could be negatively impacted.

If you are ready to admit that you are in over your head with credit card debt, now is the time to get help. Perhaps you just need credit counseling in order to pull back the reins on your credit card spending. Or maybe you are interested in debt negotiation as a way to get your existing debt paid off at a fraction of the amount you owe. Or perhaps you are so in over your head that you want information about the bankruptcy process and whether you qualify.

Our firm has been assisting Wisconsin residents in all of these situations and more. While it may be scary to face your spending or debt problems head on, it is truly the only way to get back on your feet and start saving for your future.

Source: Daily Finance, “10 Signs You Are Headed Toward Financial Ruin,” Ellen Chang, Sept. 19, 2014