10 Signs Your Credit Card Debt Is Unmanageable

A man stressed looking at credit cards

According to a recent report, over half of Americans who took on a new hobby during the pandemic have gone further into credit card debt. For some, this is not an issue. After all, people were forced to stay at home and for those lucky enough to keep their jobs and businesses, the additional time they suddenly had allowed them to start doing things they were unable to before.

Others, though, may be concerned about how much debt they are taking on and may worry that it is becoming unmanageable. So, how do you know if your credit card usage is out of control? The 10 signs explained below can help you determine if that is the case.

Your Credit Cards Are Maxed Out

Perhaps the biggest sign that your credit card debt is out of control is that you simply have no more room to spend on your card. Many people think it is not a big deal to go one or two months without paying their credit cards, but this is not true. Even failing to pay off the balance for a month or two can result in credit cards becoming maxed out, and your debt may get out of control. Additionally, if your balance has gone over and above your credit limit, that is an even bigger sign that your credit card debt is out of control.

You Can Only Afford the Minimum Payment

You are only required to make the minimum payment every month but if you make a habit of doing that, you are going to accrue more interest and owe much more in the end. Not only will only making the minimum payment cost you more, but it is also a sign that your debt is out of control because you cannot afford to make a larger payment.

Your Payments Are Late or Missing

Again, if you are late making your credit payment, or you miss one altogether, it will cost you more in the end due to interest and other fees. If you miss a payment, or are late in making one, it is a sign that you are spread too thin financially. In this case, any credit card debt could be considered bad and a sign that it is getting out of control.

You Go Further Into Debt to Pay Your Credit Cards

Making timely payments on your credit cards is certainly important and if you can do this, it may be a sign that your credit card debt is not out of control. However, if you are going into further debt to pay off your credit card bills, it is a sign that you can no longer manage your credit card debt. Other types of debt used to pay off credit cards include payday loans, repeated balance transfers, and personal loans.

You Use Credit Cards for Everyday Purchases

Using your credit cards for everyday purchases is not necessarily a bad thing. For example, perhaps your credit card allows you to collect rewards or cash back every time you use it to make a purchase. If you are only using your credit card for everyday purchases to earn these rewards, that may not be a sign of trouble. However, if you are using your credit card for necessities and everyday purchases because you have no other choice, it may be a sign that your debt is unmanageable.

Your Credit Score Has Dropped

It is easier than ever these days to check your credit score with the biggest reporting bureaus, such as TransUnion. Many banking apps allow you to check it as many times as you want, and you can always still request a free credit report from the bureaus once a year. It is important to check your credit score regularly so you can see if it has dropped. Your credit score will drop if you are using more than 30 percent of the credit you have available. If yours has taken a hit, it is a sign that your debt is out of control and unmanageable.

You Are Denied for New Credit

Credit card companies are sometimes able to determine that your credit card debt is unmanageable even before you know it yourself. After you apply for a new credit card, the company you are applying with will check your credit report. If they see that you already have high credit card balances, they will take it as a sign that you cannot pay your current debt and will deny you new credit.

You Hide Your Debt

There is never a reason to be ashamed of debt but sometimes people are ashamed, particularly when they cannot afford to pay it. There are many ways to hide your debt, including refusing to open statements from the credit card companies or hiding your debt from your spouse. Regardless of how you hide your debt, if you are doing it, you are probably in over your head.

You Cannot Afford Savings

It is impossible to save money when all of your income is going towards your current debt. If you cannot afford to put any of your money away because you are spending it all on credit card debt, it is a sign that your debt is out of control.

You Worry About Your Credit Card Debt

Everyone worries about their debt to some extent. However, if you are excessively worried about your debt and it is keeping you up at night or you are thinking about it all day while you are at work, it is a sign that your debt has become unmanageable and that it has gotten out of control.

You Need a Debt Defense Lawyer in Florida

If a creditor or debt collector has taken legal action against you, that is another major sign that your debt has become unmanageable. At Loan Lawyers, our skilled debt defense attorneys in Fort Lauderdale can help you defend against these types of lawsuits and give you the best chance of a favorable outcome. Call us today at 954-807-1361 or fill out our online form to schedule a free consultation.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.