If used sparingly, a credit card can be an incredibly useful financial tool. The careful use of credit cards can help you maintain and build a good credit score. Also, credit cards are a great help during an emergency, but they can be equally dangerous. So, how can you know you’re in for some trouble with your credit cards?

Here are some of the signs of credit card debt you should know about:

• Making only minimum payments
  Lower payments are okay because that gives you a little flexibility in managing your expenses, but your debts extend if you keep making only minimum payments. When you chip away the credit, you’re stuck in a vicious cycle of debt, as the interest keeps racking up.
  Regardless of the amount of your debt, making a minimum payment is a problem. Some
  eople spend decades paying off a small debt, as they pay just minimum monthly payments and extend their debt. As for people with more enormous debts, it is vital to make as many payments as possible to reduce the overall debt amount.
• Regularly maxing your limits
  If you’ve been persistently maxing out your credit limit, there’s a fair chance that your debt is off-limit. Know that when your cards hit a limit, it is a clear sign of credit card debt that you must know. Regularly maxing out your card limit will affect your credit score, as you will have a high credit utilization rate, so cut back on using your cards.
• Not having any savings
  Savings are a backup for contingencies, and they aid you to tide over emergencies like purchasing an asset or dealing with an unforeseen accident. If you live on a monthly salary, not having any savings is a clear red flag that you must be aware of. Using a credit card for meeting expenses is okay, but not having enough savings is certainly not good.
• Receiving calls from debt collectors
  If your debt collectors are repeatedly calling you regarding unpaid bills, it is a sure sign of credit card debt that you must know of and understand that your credit card debt is out of control. When debt is in the collection, it means that you did not pay your dues on or before the due date, and it will directly impact your credit score.
• Having multiple credit cards
  Credit cards are helpful financial tools, but having multiple cards can increase your limit and tempt you to overspend. Also, applications for multiple credit cards in a short time brings down your score due to hard inquiries into your account. Always remember that credit card expenses must be repaid in time, and increasing the number of cards will only aggravate the situation further.

You should know these signs of credit card debt to ensure that you don’t end up in serious financial trouble.