6. You’ve exceeded your credit card limit
Have you ever maxed out a credit card? It’s a bad feeling, right? And when you have exceeded your credit card limit, it’s even a worse feeling, because now you are paying your bill, interest and over-limit fees. That’s a ton of money to put towards only one bill. Plus, it can lower your credit score.
7. You use your credit card to pay bills
Using your credit card to pay off your basic bills such as utilities or other credit cards’ bills is a red flag. And transferring balances from one card to another is also a warning sign of living beyond your means because you are not paying anything down.
8. You only pay the minimum payment
If you only pay the minimum payment every month, its’ one of the biggest sign you are living beyond your means. Paying the minimum won’t help you pay off your debt and you will be paying more in interest, and this can only add to the problem.
9. Denied new credit
If you do not have the cash, but you want a new laptop or flat screen television, you might apply for store credit. You think that you have enough income and you can afford the monthly payments. However, income is not the only factor that can determine whether you’re approved. The stores also take into consideration your existing debt. Denied new credit indicates living beyond your means.
10. Your credit balances are high
It’s okay to have more than two credit cards. However, if all of the balances on your credit cards are high, you are definitely living beyond your means. Moreover, if you have high balances it will prevent you from getting a new credit and it’s more difficult to pay off, thus you will end up paying tons in interest.
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