Q: How do I know if I have too much credit card debt?

A: If you routinely miss payments, are able to only pay the minimums, or your balances keep growing, then you probably have too much credit card debt. If you're concerned at all, you probably have reason to be. Answer this question: Do I pay off my credit card balances with some regularity, or do I at least have relatively stable balances? If not, then you probably have too much debt. Secondly, answer this: Do I pay only the minimums, or am I constantly accruing late-payment fees, over-limit fees, etc.? If yes to either or both questions, then you almost certainly have too much debt.

Ultimately, you have too much debt if you can't really even use your credit cards due to balance max-outs. In this case, your credit cards have ceased being a resource and have become just another obligation. If you're only able to pay your minimums, then the bulk of your monthly payments go toward interest -- which is why your balances seem to never really go down, even if you've stopped using your cards.

If you can, try coming up with an extra $20 a week to apply to your credit card with the highest interest rate. If you can do this, then once the card is paid off, apply that $80 a month plus the old minimum payment on the paid-off card to your next credit card, and in no time, you'll have all of your cards paid off. But if you can't manage to scrounge up even an extra $20, then you probably need professional help. Consider credit counseling, debt management, or debt settlement before even thinking about bankruptcy.

Other Credit Card Debt FAQ's Related Credit Card Debt Articles
Begin Online or Call 1-888-439-5454

Find the Right Debt Solution
Start With a FREE Debt Analysis

1. Which of these best describes why you are
    in debt?

2. What types of debt do you have?
    (please check all that apply)
img
Please Note: Unsecured debts are debts such as credit cards, personal loans, lines of credit, store cards, medical bills, and utility bills that are not secured by collateral. Mortgages and car loans are NOT considered unsecured debt.
Privacy Policy | Terms & Conditions | Sitemap | © 2004-2012 Triad Media Solutions, Inc. All Rights Reserved.