9 Warning Signs You Have Too Much Credit Card Debt

Credit card debt is something many of us find ourselves in, before getting in over your head; there are several warning signs that you have too much credit card debt. If you notice any of these in your financial situation, take action now to prevent the scenario from getting worse. 

1. No Savings

If there are no savings in your account, it generally means it is taking every dime you make (and maybe more) to survive. You may have too much debt, but if your income has been reduced as a result of a job loss or pay cut, the absence of savings may only be temporary. Make it a point to start contributing to savings as much as you can, as soon as you can.

2. Making Minimum Payments

If you are only able to make the minimum payments, or able to make less than the minimum payment each month, chances are you have too much debt. As soon as possible, start making more than the minimum payment to pay down the debt and stop making additional charges on your cards.

3. Getting Close to or Over the Limit on One or More Credit Cards

If the balances are getting high or you are actually over the limit on one or more credit cards, you have too much debt. The best thing you can do is stop charging more debt on the cards and make arrangements to reduce the number of fees you incur each month for having high balance. Avoid making late payments as these fees will only make the situation worse.

4. Occasional Late Payments

If you find it hard to make all your credit card payments on time, you are likely in too much debt. Work out a budget that allows you to make all your payments on time. 

5. Unsure of the Total Debt Amount

If you don't know exactly how much debt you have, chances are it's more than you realize. Check your credit report and tally up all the debt. Collect credit statements to get a balance if you've already used your free credit report for the year.

6.  Using Credit Card Cash Advances to Pay Bills

Cash advances are high interest rate loans, usually not worth the cost it takes to get them. If you've reached this point, you are in too much debt.

7. Lying to Friends and Family about Spending Habits

If you find yourself lying about your spending habits to friends and family, chances are you are embarrassed by them, which may mean you are in too much debt.

8. Denial of Credit

Creditors look at how much debt you have and how much of your credit limits you are using. If you are denied credit, you probably already have too much debt. Creditors work to try to prevent you from going more into debt, but can only do so much to help.

9. Charging More on Credit Cards while Trying to Pay them Down

If you find yourself continuing to charge up debt while trying to pay it down, you have too much debt. Stop making any purchases that are not necessary and take steps to conserve on things such as food and utilities until you can get the budget under control.

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