No one means to wind up buried under a mountain of debt when they take out that first credit card. Some people wind up in this situation because they’ve never learned how to budget properly or manage debt responsibly, while others know perfectly well that they are going to wind up struggling later but have no choice but to use credit cards to cover emergency situations.
Either way, the resulting debt can leave people feeling anxious, depressed, and feeling out of control. The first step is to recognize the problem, so read on to find out about the top signs. It’s time to seek credit card debt help.
Making Minimum Payments
If all a borrower can afford is to make minimum payments each month on one or more cards, their debt will only continue to grow. In many cases, the interest accrued each month, alone, is higher than the amount debtors are able to pay to their credit card companies. The good news is that there may be better options, such as debt consolidation, that could help borrowers get back in control of their finances.
Maxed-Out Cards
Maxing out credit cards refers to reaching or exceeding their credit limits, often more than once. It leaves the cards unusable until the balances have been paid down and often causes a hit to the borrower’s credit score. Some people open new personal lines of credit to pay down their balances, but that only perpetuates the cycle. It’s better to seek professional help before things get completely out of control.
Juggling Payments
Most people don’t have just one credit card. They have two or three, or even more, and unfortunately, some borrowers use cash advances from one of their credit cards to pay off monthly bills on other ones. Because cash advances typically come with extremely high interest rates, this desperation strategy is a good sign that a person’s credit card debt is spiraling out of control.
Resorting to Payday Loans
Payday loans are a lot like credit card cash advances in that they typically have much higher interest rates. The reason the interest rates are higher is that the loans are less likely to be paid off on time, largely because the average borrower is cash-strapped, has a low credit limit, and has current or past financial problems. Resorting to taking out payday loans is just as bad as juggling payments between credit cards using cash advances. It means that there is a real problem.
Feeling Like There’s No Way Out
People struggling to keep credit card debt under control often experience extreme anxiety about their financial situations. They may feel hopeless or like there’s no way out from the growing mountain of debt. Thankfully, there is help available to those who seek out credit card debt consultants.
Get Help Now
Borrowers don’t need to wait until they’re experiencing sleepless nights and mounting levels of depression and anxiety regarding their financial situations to seek out help. Anyone who feels that their credit card spending or existing debt is getting out of control should reach out to a professional. It’s the best way to get things back on track.
