There’s been a time in many of our lives where we open our credit card statement only to find that we are in a hole that never seemed possible. Through the constant use of various credit cards – some issued by banks and others issued by retailers – a seemingly insurmountable amount of debt has appeared. There may be some of you out there who are considering whether or not to cut up your cards before finding yourself in a situation like this. Here are some basic tips to help you discern whether or not it’s time to cut up the plastic.

You Pay the Monthly Amount

If your debt on any given credit card is so big that you cannot afford to pay more than the required 4% each month, then it is time to say goodbye to that line of credit. With compound interest factored in, you are very likely to be paying on this balance for decades – or even never pay it off if you continue to charge things to the account. It’s fine to make just the minimum payment every once in a while, but if you are chronically only paying the stated amount, you are throwing money out the window and enslaving yourself for decades to come.

Physical Ailments From The Thought

Whenever you contemplate your current credit card situation, does it physically make you feel sick or stressed? This is one of the best signs that it is time to get rid of the cards in question and regain your health and sanity. The stress and unhappiness caused by the debt can be far more detrimental to you than any perceived benefits of being able to spend what you want.

Your Card Is Maxed Out

Any card that currently has the maximum credit limit used is a prime candidate for “card removal”. It’s abundantly clear that by using all available credit on any one card, you are not in a position where you need to be adding even more debt to your name. Cut up the card, minimize expenditures on any other cards and get the balance paid off before it eats you alive.

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