3 signs you are too deep in credit card debt

Credit cards are great tools for improving your credit score if you use them responsibly. However, if you are not careful, you might end up with an unmanageable amount of debt. But how do you know if you are in too deep? You might know you have some debt, but it can be difficult to know exactly when you have gone over the edge.

You might think ignorance is bliss, but you should confront your credit card problems directly. Below are some of the most urgent warning signs of a credit card debt disaster

1. You skip one payment to cover another

While you might need to prioritize credit card bills sometimes, you should always avoid skipping any payments. If you are constantly unable to afford your credit card bills, you are in trouble. As you keep skipping payments, your credit score will become more damaged.

2. You use credit cards to cover necessities

Your income should cover basic living expenses such as clothing, food and gas. If you find yourself needing to use credit to handle these purchases, you are probably in financial trouble. Consistently being unable to live within your means results in a growing credit card debt that may become too much to manage. 

3. You can only afford minimum payments

According to personal finance journalist Rebecca Lake, it is easy to fool yourself into believing your credit card debt is not too bad if you are able to cover the minimum amount each month. The truth is this is a warning sign of disaster. Only paying the minimum will cost you significantly on interest charges and will consistently leave you on the brink of consumer debt. 

If you see these warning signs in your life, you have options. You might be lucky and be able to reverse the trend, or you might be too far gone and need to discharge your debt through bankruptcy. But no matter how much debt you have, you can start over and rebuild your financial future with the right help.

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