How to tell when your credit card spending is already a problem

Published by rudy Date posted on October 17, 2010

How to tell when credit cards are out of control

Credit cards are one of the easiest ways to borrow money, and this can be a problem. There are many related horror stories, and there is a real danger that credit card debt can grow faster than the borrower’s capacity to deal with it. But there are some warning signs to help a person determine if their credit cards are a problem, before it becomes critical.

One of the best ways to determine if credit cards are out of control is whether the account holder has the financial ability to make double the minimum payment. Although making the minimum payment will repay most credit cards, this will take a very long time—easily decades—and will cost a great deal of money in interest charged. Repayments should regularly total at least double the minimum required amount, and in good months more. If this cannot be done, or if it’s very hard to do this regularly, then it’s a good early warning sign that credit card debt is getting out of control.

Another warning sign is the number of cards and how many of them are at their maximum level. While it sometimes makes sense to “max out” a credit card, for example if the interest rate is lower than other forms of available borrowing, as a general rule of thumb carrying the maximum debt can be problematic.

If a borrower consistently reacts to increased debt levels by opening new credit cards, this will become unsustainable.

Another warning sign of impending financial disaster is an inability to qualify for low interest rate credit card offers that were previously no problem. This change could happen for a number of reasons, including a lower level of credit available on the overall market, or a change in jobs. But it could also be due to a lowering of the applicant’s credit rating because of all the borrowing already in his or her name.

The final warning sign is when the account holder, month after month, borrows more on their credit cards than they repay. Sometimes people are unaware of this, so it’s always a good idea to track borrowing and repayments every month. Some fluctuation is perfectly healthy, but if there is a constant pattern of increased borrowing then this will develop into a problem.

April 2025

World Day for Safety and Health at Work
“Safety and health at work every day!”

Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

Monthly Observances:

March – Women’s Role in History Month
April – Month of Planet Earth

Weekly Observances:
Last Week of March: Protection and Gender Fair Treatment of the Girl Child Week
Last Week of April – World Immunization Week

Daily Observances:
Mar 25 – International Day of Remembrance of the Victims of Slavery and the Transallantic Slave Trade
Mar 27– Earth Hour
Apr 21 – Civil Service Day
Apr 22 – World Earth Day
Apr 28 – World Day for Safety and Health at Work

Trade Union Solidarity Campaigns

No to Trafficking

Jobs! Jobs! Jobs!

Categories