How much credit card debt is too much? The answer will vary from person to person, depending on individual circumstances, but a good rule of thumb is that you should be able to pay all your credit cards debts off within six month. The best advice is not to have any credit card debt at all, as this is an expensive way of borrowing money. Realistically though, most people aren’t financial angels, and are going to run up credit card debt at some time other in their life, simply because it is so easy to use a credit card to buy almost everything that a person could possibly want or need.
Provided that you are in control of your credit card borrowing, and have realistic and achievable plans for how it will be paid off, then all is well. If this form of borrowing suits your lifestyle, than that’s fine. However some people get into really serious problems with their credit and charge cards. If you find your credit card debt is getting out of control, then it’s wise to seek the services of a debt consolidation agency. They will enable you to consolidate debt, in other words, the agency will mange all your debts so that you only need to make one payment each month.
The debt consolidation service will negotiate with all your debtors to achieve the best possible repayment terms for you, often reducing interest charges or penalties and extending payback periods. The agency will deal with all the communication with your credit card companies – you will never have to speak to them again, which will probably be a great relief!
Of course, you will still have the responsibility of paying back your debts, but instead of a situation which is frighteningly out of control, you will have a managed situation with advisers who will work with you to get your debts cleared and put you back into good financial shape.