Credit card debt is almost looked on as a fact of life anymore. Having it is the norm rather than the exception. Like most things that become commonplace, having credit card debt is no big deal. Right?
Well, maybe and maybe not. The answer is not as simple as it seems because there are many factors to consider. Each person’s particular circumstances are different, and what is excessive debt for one person might not be for someone else. A person might not have what seems like too much debt, but if they suddenly lose their job, that debt might look very different.
Even though there are different ideas and opinions about how much debt is too much, there are some guidelines to help you make that determination. The Consumer Protection Agency has come out with eight indicators to determine if you are at risk of having too much debt. The following indicators will help you to know if you are nearing the debt danger zone. You may be in the debt danger zone if you:
· Have to use your credit card to pay for necessities like food or gas
· Have a savings account that is depleted with no prospect of adding to it
· Have only been able to pay the minimum balance on your credit cards over the last six months
· Are juggling several credit cards to keep up with debt payments
· Are over 50% of your credit card debt limit
· Have been using your credit card for cash advances to live from month to month
· Are paying an increasing amount of your debt obligations with credit cards
If you’re experiencing firsthand a few or more of these, you’re not alone. Many people who are struggling to pay off credit card debt are also struggling to pay their car payments and the monthly mortgage payment.
If you’ve determined you’re in the “debt danger zone”, your next step should be to ask yourself what you’re going to do about it. Consider your options and take action.
Tags: budget, credit card debt, debt management, debt relief, finances, financial planning, get out of debt
