Used prudently, a credit card can be an effective financial tool. A credit card can come in handy when an unexpected expense comes up. You can also use it to build and maintain a strong credit history. And, you basically need a credit card for certain transactions like car rental and hotel booking.
Unfortunately, it is not uncommon to get sucked into credit card debt to the point where things become uncontrollable. Here are two signs your credit card debt is becoming overwhelming:
You’re relying on credit to finance your day-to-day expenses
Sometimes, you might run out of funds to meet your daily needs. When that happens, it might be completely appropriate to use your credit card to take care of deficits in your monthly budget.
However, this might not be a sustainable solution. Turning to your credit card every time you have a budgetary deficit only creates credit dependence. Before you know it, your credit card debt will have spiraled out of control.
You’re regularly hitting your credit card limits
If you are routinely maxing out your credit cards, then there is a good chance your debt and, thus, your dependence on credit cards is getting out of control. The same is true if you are making partial monthly payments to remain within your credit limits.
This is mostly a hard-to-win battle since your interest rates will make it quite difficult for you to finally get out of debt.
Protecting your interests
Credit card debt can be a big issue. Understanding the depth of your problem instead of trying to cover it up can help you protect your rights and interests while navigating your way out of debt.
