Credit cards make it almost too easy to spend. You swipe and go. But behind that convenience is an average interest rate of about 20%. That means every month you carry a balance, the amount you owe grows, even if you make partial payments.
You’re not alone if your credit card balances are growing faster than your paycheck. Millions of people are struggling to keep up with rising interest rates, late fees and payments that barely make a dent. What starts as a few charges here and there can snowball into crushing debt before you even realize it.
Signs your credit card debt is out of control
It’s easy to overlook the warning signs until the situation feels overwhelming. For instance, if you’re only making minimum monthly payments and your balances aren’t shrinking, that’s a red flag. Maxed-out cards, relying on one card to pay another or avoiding opening your statements are also signs things are getting out of hand.
Are collection calls becoming routine? Are you using credit to cover basic needs like groceries or gas? These, too, could indicate that your debt is more than just temporary.
What can you do about it?
Recognizing the problem is the first step to resolving it, and you can regain control of your finances before things get worse. Start by listing your balances, interest rates and minimum payments. From there, look for ways to reduce spending to pay your debt more aggressively. You may even talk to creditors about hardship options or lower interest rates.
If such efforts fail to offer reprieve, it may be time to consider bankruptcy. It’s not about giving up; it’s about getting relief and a fresh start when other options fall short. Reach out for legal guidance to explore your next steps with clarity and confidence.
