If you’re feeling overwhelmed by credit card bills, loan payments and keeping up with your credit line, you’re not alone. In fact, recent studies show that money woes — debt in particular — are a high stressor among Americans.1 Though many people use credit for large purchases and to cover unexpected expenses, too much debt is bad for your finances — and your health because of the stress it causes.

Here are five signs you may have too much debt.

1. There’s No Available Room on Credit Lines and Credit Cards

If you can’t use your credit cards or credit lines for additional purchases because you are near, at or over your limit, you may have too much debt. Known as “maxing out your credit,” a credit card balance at or over the limit puts you in a dangerous financial situation because you can’t use the card in an emergency.

Make a payment to free up room under your existing limit, apply for a limit increase or talk to a financial professional for other options to put you on a stronger financial footing.

2. You Can’t Keep Track of Credit Account Payment Dates

When borrowers have multiple loan, credit card and credit line payments each month, it can be difficult to remember when each payment is due. This increases the chances that you’ll miss a payment, and several missed payments may affect your credit.

If you’re finding it hard to track and organize your debt payments, it could be a sign you have too much debt. Simplify your bills by setting up automatic credit card payments from your bank account (but make sure you have enough to cover each payment), or consolidating your debt into fewer credit card accounts so it’s easier to keep on top of monthly payments.

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3. You’re Declined For Additional Credit Because of High Debt-Service Ratios

Has your recent mortgage, loan or credit card application been declined because your monthly income isn’t enough to support your debt payments? If the ratio of monthly income to monthly debt is too high, you may simply have too much debt. Prepare to either increase your income or reduce your current monthly debt payments (possibly through debt consolidation) to reduce your debt-to-income ratios.

4. You Can’t Make the Minimum Monthly Payments Due on Each Account

Struggling to meet even the minimum payments on each of your credit accounts may point toward too much debt. And continuously making only minimum payments may negatively affect your credit score, your monthly bills and your total credit card interest.2

5. You’re Using Cash Advances From One Credit Account to Pay Off Another

Don’t have available cash in the bank to make your payments? Continuously taking cash advances from one credit card or credit line to make payments on another may be a sign of financial difficulties, and too much debt. While it may provide a temporary fix, in the long run you’ll have more debt and more interest to pay back.

Don’t let debt issues ruin your financial, mental and physical health. If you’re struggling to deal with your debt, visit the National Foundation of Credit Counseling online or call 1 -(899)-698-6322 for help.

Sources:

1.http://www.nerdwallet.com/blog/credit-cards/use-savings-to-pay-credit-card-debt/

2.http://www.nerdwallet.com/blog/credit-cards/credit-score/minimum-payment-credit-card/

Legal Disclaimer: The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice. 

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