Credit cards are very interesting, in the sense that you can use them in a certain way and never have problems with debt. They’re just a convenience. Many people use them for decades without an issue.
On the other hand, they very often contribute to bankruptcy. It’s important to know if the way that you’re using your card may inadvertently be pushing you closer to a level of financial debt that you can’t overcome. What are some red flags to look for?
You can’t pay off the balance
The biggest issue is when you can’t pay the full balance due. If you’re only making the minimum payment due or even a little more, but not the full balance due, you’re going to start accruing interest. When interest keeps accruing, things often can spiral out of control.
You start opening new cards
If you’re only making the minimum payments on one card or if you can’t pay off the balance entirely, but you still need to spend, you may decide to open a second card – or a third. The more cards you have, the greater the chances are that you could get into significant debt.
You spend impulsively
One problem that people will sometimes run into is when they’ll spend impulsively on a credit card in ways that they simply wouldn’t with cash. It can make it all too easy to make that purchase and decide that you’ll figure out how to pay for it later, but that doesn’t mean that you actually will.
If you have credit card debt that is affecting your ability to meet your other financial responsibilities, bankruptcy can be a good solution. It’s wise to learn more about how it works and if it would be the best choice for you.