3 Signs You’re Too Reliant on Credit Cards

July 22, 2016 | Updated at 1:13PM, July 22, 2016

While some credit card use is not a bad thing, for some of us this debt can grow fast. It is easy to end up with a huge amount of credit card debt in a short time, especially for young people who have not had a credit card before, or for those who have lost all or some of their income. For those using credit cards often, here are several warning signs that you’re about to get too deep into debt.

1. Maxed-out credit cards. This hurts in several ways. First, it means you have a large amount of debt to pay. Second, it damages your credit score because the ratio of debt you have to the amount of credit available to you is almost zero. Third, credit card companies may respond by lowering your credit limit, making it hard to get out of debt.

2. The credit card company raises your APR. This often occurs when the cardholder has missed several payments in a row. The higher rate means increased monthly interest charges, which can eat away at the amount of credit available, as well as raise the minimum payment each month.

3. Feeling stressed over bills. Once you begin stressing about your debt, you probably don’t need any other warning signs that you are in over your head.

If you want to settle outstanding debts for less than what you owe, try our debt settlement tool.

Originally Posted at: http://www.moneytips.com/3-signs-you-are-too-reliant-on-credit-cards/150

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