3 red flags you are heading toward a credit card debt crisis

Your credit card comes in handy when you need or want to make a big purchase. It is an easy tool to use, which means you may lose track of your spending. You may have an idea that you have a debt problem, but you may not know–or want to admit–the severity of the issue.

It is important to come to grips with financial troubles so you can resolve them before they get worse. Here are some red flags you are heading toward a debt crisis.

1. Making minimum payments

This is always a cause for concern. Even if your debt is not insurmountable, it may take you years or decades paying it off when you only make the minimum monthly payments. You should be paying as much as possible. However, if you simply do not have the funds to pay more than the minimum requirement, you may need to consider filing bankruptcy to discharge your credit card debt.

2. Creditors contacting you

Are voicemails filling up your phone or emails piling up in your inbox? If debt collectors are reaching out to you, you have a serious issue. It is especially worrisome if the collectors are threatening you with wage garnishment. Instead of communicating with collectors on your own, direct them to your attorney.

3. Card declines

If you are near the limit of or maxing out on your credit cards, this is a concerning issue. Using multiple cards at the cash register until one works is not only embarrassing, but it is also a clear sign that you are in deep water. Once this happens, stop using your cards immediately until you pay down the existing balances to levels that are manageable.

There are a lot of other warning signs that you are in financial trouble, but these are a few of the most concerning. If you see any of these signs in your life, make sure you get help.