Gratitude is an underrated personal finance strategy. Credit card debt does not rank highly on most people’s lists of things to be thankful for, but consider this. If you have credit card debt, it means that you once got approved to open a credit card account, which means that you also have a bank account. Some people are stuck cashing their paychecks at shady storefronts that also issue payday loans or else receiving their wages on an employer-issued debit card; both of those options charge hefty fees, lending credence to the statement that it is expensive to be poor. 

If you have any available credit left on your credit card, you should especially count your blessings. Even though purchases you made months ago, or even years ago, are still racking up debt, at least you have some wiggle room where you can make another charge on your credit card in the case of an emergency expense. If your account is maxed out, though, then your credit card is just another source of debt. Credit card debt is one of the most common reasons for individual bankruptcy filings, but filing for bankruptcy is not the only way to address it.  If you have one or more maxed-out credit cards, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

Risk Factors for Maxing Out Your Credit Card

As of October 2024, 37% of American consumers who have at least one credit card account have at least one credit card that is maxed out. A credit card is said to be maxed out when the account holder has no more available credit; the account holder has reached the credit limit through purchases that he or she has not yet paid off and perhaps also through interest charges on those purchases.

No one opens a credit card account with the intention of maxing it out. If you open an account in order to make a major purchase, you usually have a plan to pay it off over time, and you are able to stick to the plan, at least for a while. Instead, most people with maxed-out credit cards started out with the intention of paying off their cards in full each month, but as life got more expensive, their outstanding balances gradually crept up, even as the consumers paid more than the minimum payment every billing cycle. Many of them pay hundreds of dollars toward their credit cards each month, only for the card to max out again the next month, as the consumers use the cards as a stopgap measure until payday and the interest charges on such a high balance pile up quickly. The age group with the highest share of cardholders having a maxed-out card is people in their 40s and 50s, the age when people are most likely to be financially supporting multiple generations.

Contact the Law Office of Melanie Tavare About Protecting Yourself From Maxed Out Credit Cards

A debt relief lawyer can help you if your credit card is maxed out. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.