Credit card debt can be hard to deal with, but if you can get a handle on it early, you may be able to consolidate it or pay it down before you get in too deep. It’s easy to slip too far into debt, though, so how can you know if your debts are too extreme?
There are a few signs that your credit card debts are out of control. For instance, if you find yourself transferring your balance to different cards to benefit from low introductory APRs, then you’re already working a system that can be of benefit to you. However, if the balance isn’t reducing and you’re just shifting it from one card to another, you may be in too deep. To get a handle on your debt, make a plan for a 12-month payoff by splitting your debt equally for the next 12 months. If you can’t do that, then transfer what you can to the next 0 percent card. Then try to do the same thing again.
If you’re unable to save any money, it can be a sign of too much debt as well. If you are always paying your money into credit card payments, you won’t be saving up. Without saving money, you’ll always be at risk of falling back into debt.
Finally, if you’re always worried about your debt, it’s time to make a change. You may want to consider bankruptcy if you can’t afford your payments, for example, or you could work with your attorney to create a consolidation plan or repayment schedule.
Source: Business Insider, “5 signs your credit card debt is out of control,” Erin El Issa, U.S. News & World Report, Sep. 04, 2015