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.