Ten Signs Your Credit Card Debt is Out of Control

Residents of Fort Lauderdale carry some of the highest credit card debt in the country. In the first quarter of 2022, credit card debt in the city stood at $983.2 million, averaging approximately $13,115 per household. This is well over the average nationally and is among the most of any large city within the United States. Clearly, many people are struggling with debt that has gotten out of control. Unfortunately, many people do not even realize their debt has reached such unmanageable levels. So, how can you tell if your debt has gotten out of control? Below are ten signs.

1.Your Credit Cards Are Maxed Out

If you do not pay your full credit card balance every month, you can quickly max out all of your cards, and even go above your limit, which will cost you more in interest and late fees. If you have more than one credit card that is maxed out, it will only compound the problem. If your balance exceeds the limit, the company that issued you your credit card is likely to increase your interest rate. This will only make it even more difficult to pay off your balance.

2. You Can Only Afford Your Minimum Monthly Payment

Credit card companies will always give you a minimum balance you must pay. However, you should always pay more than the minimum amount so you pay more towards your balance and eventually eliminate your debt. Ideally, you should pay off your full credit card balance at the end of every month. If you are finding that you cannot afford to pay more than your minimum monthly payment, it is a sign that your credit card debt has spun out of control.

3. You Make Late Payments

If you miss making credit card payments, it is going to hurt your credit even further. A late payment increases the amount you now need to pay to catch up on the debt, and it will also result in late fees being added to your balance. If your credit card is maxed out, even just one late fee could push you past your limit, hurting your credit even further.

4. You Use Other Debt to Pay Off Your Credit Cards

Repeat balance transfers, cash advances, and payday loans are convenient and they may seem like a great option to pay off your credit card debt. Unfortunately, you are only going into more debt and if you use your credit card after you have paid the debt, the situation only becomes worse. If you need to take out debt to pay your debt, it means it has gotten out of control. It is important to determine how you are going to pay off your debt, without taking on any more.

5. You Use Credit Cards to Purchase Every Day Necessities

Using credit cards to pay for groceries or other daily necessities can help you earn cashback and rewards. If you pay your balance every month, it can even help improve your credit score because you are showing that you can afford to take on the debt. If you are using your credit card to make daily purchases because it is the only way you can afford them, that is very concerning.

6. Your Credit Score Has Dropped

You should not use more than 30 percent of your overall credit. Thirty percent is considered a good credit utilization ratio or, in other words, how much credit you are using compared to the credit you have available. If your credit utilization ratio is higher than 30 percent, it will lower your score and is a sign that your credit card debt is out of control.

7. You are Denied New Credit

Credit card companies may notice that your credit card debt is out of control before you do. If you have been denied a new credit card, the credit card issuer should have sent you a letter notifying you of the reason for the denial. If the credit card company said they could not approve your application because of high balances on your credit card, it is a sign that it is time to stop spending and pay back your debt before the situation becomes worse.

8. You Hide Your Debt

If you feel as though you have to hide your debt, it is a sign that it has become unmanageable. Hiding your debt could mean that you do not tell your spouse about it, or that you do not open credit card statements when they come in the mail.

9. You Do Not Have Any Savings

A significant amount of debt will mean that you do not have money for anything else, including savings. If you do not have savings, you may have to eventually take on more debt if an emergency occurs, which will only make paying it off even more challenging.

10. You Worry About Paying Off Your Credit Cards

Anyone who has struggled with debt knows that worrying about paying it off can keep you up at night. If you have noticed that you are increasingly concerned about paying off your debt, it may mean you have more than you can handle. However, do not think that if you do not stress about your debt it is under control. You may be in denial about the seriousness of the situation, or you may just be ignoring the problem.

Problem with Debt? Call Our Consumer Debt Lawyer in Fort Lauderdale for Help

Struggling with debt often means receiving harassing calls from debt collectors, and facing lawsuits that could result in wage garnishment or other consequences that will make your life more difficult. At Loan Lawyers, our Fort Lauderdale debt defense lawyer can help with any legal action you may be facing and will give you the best chance of a favorable outcome. Call us now at (954) 523-4357 or contact us online to schedule a free review of your case and to learn more about how we can help.