4 Signs You’re Carrying Too Much Credit

Credit card debt can be dangerous. It can quickly spiral out of control if left unchecked. However, it’s not always easy to know when you’ve hit this point. 

Here are four signs you’re carrying too much credit.

  1. You’re Only Making Minimum Payments

Some people look at the minimum payment on their credit cards as a way to basically get free money. This is definitely not the reality of the situation. 

It’s okay to make a minimum payment once in a while — if you’re really squeezed for money for whatever reason. But this isn’t something you should allow to become a habit. 

See, when you only make the minimum payment on your credit cards, your debt balloons into something much larger than what it was originally. This is due to the fact credit cards typically come with some of the highest interest rates of any type of debt. If you’re finding yourself only able to make the minimum payment month after month, it’s a sign you’re carrying too much credit. 

  1. Your Debt Keeps Growing

In theory, debt is something that should be acquired, then paid down in an orderly fashion. Of course, not everything works out the way it should in theory. 

Oftentimes, people find their debt doesn’t go down, even if they’re making payments. Or they find their debt keeps getting bigger. Again, this is a result of how interest can keep you in debt longer than you ever imagined. 

It’s wise to attack debt methodically so you can gradually eliminate sources of interest. The snowball method, which has you pay off your debts one at a time in full starting with the lowest balance, has been shown as the most effective way to repay credit card debt. When implementing a strategy like this, it can actually make sense to pay the minimum on certain accounts if it allows you to totally eliminate others. 

  1. You Don’t See How You Can Repay Your Debt

Not seeing a way out of debt is a sure sign that you’re currently carrying too much of it. Fortunately, there are ways to beat your debt even if you’re in this situation. 

Debt relief can be the best option for people who can’t overcome their debt on their own. A debt relief company can help you settle your debts or even give you a consolidated loan that will simplify your repayment. 

It’s important to go with a company that has strong user reviews, as not all debt relief companies have the consumers’ best interests in mind. Freedom Debt Relief reviews, for example, demonstrate it’s one of the most reliable organizations in the debt relief world. 

  1. You Have Debts in Collections

Anyone who has dealt with collections knows it’s not a fun process. One of the hardest parts is dealing with the emotional turmoil of knowing someone might be calling unexpectedly. Fortunately, there are regulations regarding what collectors can and can’t do. For instance, they can’t call you before 8 a.m. or after 9 p.m. There are also rules that say collectors aren’t allowed to harass you or people who know you

It’s wise to always record your conversations with a debt collection agent as evidence. If they’re found to have used illegal practices, it can work in your favor. 

Carrying too much credit can be a detriment to your finances. If you’re in a situation where you have too much credit card debt, it’s time to take action. 

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