Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

How to tell if credit card balances are excessive

There are many signs that a Tennessee resident may have too much credit card debt. For instance, if they are using credit cards to pay off other credit cards, that is likely a problem. Other signs include if card balances are maxed out or if payments are higher than the debtor's other bills. Those who have a high debt-to-income ratio should also check to see if their credit card debt is causing the problem.

Ideally, an individual will aim to use no more than 30 percent of their available credit limit. Anything higher than this could indicate to lenders that the cardholder is not responsible with their debt. An exception can be made for those who use more than 30 percent of a balance in a given month but pay it off before the due date.

By making minimum payments, a person is doing little more than covering interest and fees. While this may be acceptable for a short period of time, it may not be sustainable in the long run. It can also result in a debt-to-income ratio of higher than 30 to 40 percent, which could make it impossible to get a car or home loan. High debt may also make it harder to make a large purchase of any kind.

Those who are having trouble paying down their credit card debt may wish to file for bankruptcy. Filers could get debts discharged without having to repay the full amount. However, anyone who is thinking about filing for bankruptcy may benefit from doing so with the assistance of an attorney.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top