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Credit card debt is impacting millions of Americans in 2025. Life happens fast, though, and there are times in which you may have no choice but to use credit cards to get by. An untimely layoff, medical emergency or sudden home repairs can force you to rely on your credit cards to cover expenses. Over time, these balances grow as interest charges compound, making even small debts feel impossible to overcome.
Unfortunately, the warning signs of overwhelming credit card debt aren’t always obvious, either. With credit card interest rates at record highs, what starts as manageable can quickly spiral out of control. Below, finance professionals and debt management experts share three major red flags to watch for, plus debt relief options to help you break free.
Learn about your credit card debt relief options here.
3 signs your credit card debt is overwhelming you, according to experts
You may have too much credit card debt if the following sounds familiar:
You’re only making minimum payments
While occasional cash flow issues might force you to make one minimum payment here and there, a pattern hints at trouble. Christopher L. Stroup, certified financial planner and founder of Silicon Beach Financial, says he looks for three consecutive months of minimum payments before determining there’s a serious problem.
“With compounding interest lying in wait, cardholders may notice the hole they started digging for themselves is getting deeper faster than they might’ve thought possible,” says Martin Lynch, president of the Financial Counseling Association of America. He warns that minimum payments can lead to negative amortization, where your balance increases despite making payments.
Speak to a credit card debt relief expert about your options today.
You’re maxing out credit cards to cover the essentials
“If you need to open a credit card or max out [existing ones] constantly just to live, it’s a surefire sign that debt has become overwhelming,” warns Kristy Kim, CEO and founder of TomoCredit. This pattern is especially dangerous during inflation, where costs rise but your income might not.
It’s tempting to use credit cards for everything to earn travel miles or cash back. But “chasing points with your credit cards only works if you pay [them] off in full each month,” Stroup says. Remember, any rewards you earn become worthless when interest charges pile up.
To break out of this cycle, track your spending for one month to see how much goes on credit. If necessities such as groceries and utilities push you beyond what you can pay off, Stroup recommends switching to debit. This creates a natural spending limit and makes the cost of daily living more visible.
You’re starting to miss payments
What seems like simple forgetfulness can be a sign of deeper financial turmoil. Lynch explains that people with overwhelming debt often begin “juggling payments” — intentionally skipping one creditor to pay another they missed last month. This payment shuffle may indicate you no longer have enough money to cover all your obligations.
These missed or late payments come with costly consequences. “You’re accruing late fees … which only magnifies your interest burden,” cautions Stroup. He recently discovered a client who had paid steep monthly late fees for years without realizing it.
Avoid this fate by setting a calendar reminder to review your statements each month. You may find that simply changing your payment date eliminates these unnecessary charges.
How to regain control of your finances
If credit card debt is overwhelming you, experts encourage exploring five credit card debt relief options:
- Credit counseling: First, get professional guidance on managing debt and improving your financial situation. Many nonprofit organizations offer this service at no cost.
- Debt management plans (DMPs): Credit counseling agencies negotiate lower interest rates (often around 7% instead of 25%) and create a structured payment plan. These work best if you have a steady income but high interest rates. With a DMP, “[you’d] repay the amount [you] borrowed at low interest, which gives the household budget a break,” says Lynch.
- Debt consolidation loans: Consolidating debt involves combining several credit card balances into one loan with a lower interest rate. Consider this route if you have strong credit and qualify for favorable terms.
- Debt settlement: Debt settlement companies negotiate with creditors to accept less than what you owe as full payment. This approach may be suitable if you’re “facing financial hardship [and] can’t afford minimum payments,” says Kim. However, Lynch warns that a settlement can damage your FICO score by 75 to 125 points. You may also get tax bills for the forgiven debt.
- Bankruptcy: This provides a fresh start. But “it’s a last resort [when you have] insurmountable debt and no viable repayment path,” Kim says. Bankruptcy will severely affect your credit score for seven to 10 years after filing.
The bottom line
Credit card overspending is a cue to seek help before things worsen. “Face the numbers head-on and create a plan,” advises Kim. A good first step is speaking with a nonprofit credit counseling agency. You’ll get a non-judgmental consultation where a counselor reviews your credit report and budget. From there, they’ll suggest the best debt relief strategies for your situation.
