Credit Card Debt: What To Do When It Becomes A Problem.

 Credit cards, when used responsibly, can be a helpful tool that can help you come up with funds for unexpected needs such as a car repair, large appliance purchase or even to pay an unexpected medical bill, when savings are thin. But what are the signs of too much credit card debt, and what can you do once a problem is recognized?

How much credit card debt is too much?

It could be argued that carrying any credit card balances into the next billing cycle would be too much. After all, you go into a purchase deficit once interest fees are accounted for. However, that's not practical, and credit cards can serve a good purpose when used properly. 

Instead of focusing on a set dollar amount, since we all have different financial scenarios and debt tolerance, we'll focus on how credit card debt currently makes you feel. 

Similar to the smiley face to frowny face, with a scale of one to ten that you would see in a doctor's office, credit card debt can be viewed the same way. The smiley face would obviously represent no worries whatsoever, but the grimacing frowny face would show an almost unbearable amount of stress and inability to pay back your creditors. 

Of course, trying to prevent an issue before occurring would be ideal, but that is a bit idealistic. Emergencies come up, or maybe we make an impulsive purchase, perhaps an emergency room visit, or our car broke down, the opportunities to use a credit card are plentiful. The key is addressing the uneasiness or stress before the situation becomes too dire. 

The answer to the question would be, when you feel or recognize that repaying your credit card balances each month isn't possible, it's time to plan and take action. Carrying over balances in which interest rates are applied should be considered "too much credit card debt" simply due to the fact that you are now spending more than the original purchase or service cost for the convenience of using a credit card.