5 Signs It’s Time to Use a Credit Card Debt Calculator and Get Help

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Are you feeling buried under credit card debt? Certain red flags could signal you need to cut back on spending or seek professional help with credit card debt. Here are some signs that it might be time to use a credit card debt calculator and seek assistance. 


Red Flag 1: You Haven’t Used a Credit Card Debt Calculator

The first red flag is maintaining a high balance on your card. Alternatively, you may have multiple cards open, but you’re beginning to worry about the overall balance.

You can use a credit card debt calculator to see how much you owe in total. If you make consistent payments but your balance is climbing higher, you likely need help.

 Red Flag 2: Interest Is Adding Up Too Quickly

Interest can compound on itself. For example, you might add more than $100 monthly in interest but only make the minimum payment. In this scenario, it might take you longer to pay off your credit card debt and could cost you more money. You can use a credit card interest calculator to see how much credit card debt payoff might truly cost, assuming you don’t add anything else to the card.

There are a few ways you might fix this. Credit card balance consolidation can help but some companies might close your cards, affecting your credit score. Instead, some companies pay off your credit cards but leave them open. This option pays off a personal line of credit from the service. The benefits could include a lower APR than your credit cards, and you still keep your accounts open.

Red Flag 3: You Are Opening More Cards to Get More Credit

A major red flag is if you are opening credit cards because you need a higher limit to maintain your purchasing power. This can mean you aren’t paying down your other credit cards enough to keep using them, and they are likely at their credit limit.

Eventually, lenders will not let you open new cards, and your credit score will probably suffer. This may be a spending issue, a cash flow issue, or an issue where interest is accruing too quickly each month.

Red Flag 4: You Are Only Making Minimum Payments

If you only make the minimum payment, paying off your credit card debt might take far longer than you realize. Because you are only paying the minimum, credit card debt will continue accruing, it could take years to achieve credit card debt payoff.

If you want to eliminate credit card debt sooner, you could start paying more money into the accounts every month. You can use a credit card debt calculator to see how long it will take to pay off your balance by only paying the minimum amount.

 Red Flag 5: You Are Missing Payments

Missing payments is a major red flag that you need to reevaluate your credit card usage and your approach to finances. It could be because you don’t have the money to pay the minimum. More likely, however, is that you simply forgot to pay your credit card.

You might need to set reminders to ensure you don’t miss any more payments. Missing payments is a significant credit score factor, and you could be hit with fines from your credit card company. For example, missing payments could increase interest rates, making it even harder to pay off your credit card debt.

About Tally

 Tally wants you to worry less about credit card debt and get back to focusing on what really matters. Tally can help you get out from under the weight of credit card debt. The Tally app was created to help level the intentionally complex and complicated financial playing field and offers resources such as a credit card interest calculator and blog. Tally is unlike other financial brands because it forges personal bonds with people. These bonds help the brand better support and help its members. It takes just a few minutes to apply and get started with the Tally app. Try Tally when you need help with credit card debt payoff.

 Learn how to get help with credit card debt at https://www.meettally.com/

 Disclosures: Lines of credit issued by Cross River Bank, Member FDIC, or by Tally Technologies, Inc. (“Tally”), NMLS #1492782 (http://nmlsconsumeraccess.org); see your line of credit agreement. Lines of credit not available in all states.

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