There is good debt (such as student loans and home loans) and bad debt (credit card debt, high-interest loans). There is also an acceptable level of consumer debt, as well as just plain too much debt. You could find yourself on the path towards having too much credit card debt if you find yourself in any of the following situations:
- Your wallet contains more credit cards than photos of your kids, grandchildren, boyfriend, girlfriend, spouse, pets, etc.
- You and your credit collector are on a first-name basis and exchange birthday, anniversary, and holiday cards.
- Your mailman sues you for the medical costs associated with his lower back pain after carrying around your credit card statements.
- You have moved residences at least once to keep a step ahead of your creditors.
- Your pay more in interest charges than you do in taxes.
- You start to think the national debt doesn't seem so bad.
- One month of your interest payments could pay for that dream vacation to Hawaii you've always wanted to go on.
- You forget which credit card has a balance that will cover the purchase you are about to make.
- You have to hand the merchant more than two credit cards before your purchase is approved.
- Your credit reports takes three days to download off the Internet.
- You are surprised to see someone else's credit card is one you don't already have.
If these situations sound familiar, then you should take steps to pay off your credit card debt and perhaps cancel some of your many credit cards. Also, you may want to consider a balance transfer to a low interest credit card.