Do You Have Too Many Credit Cards?

Many people find themselves lost in a sea of credit card debt, trying to pay off one after another without any relief. It is difficult to know how much credit is healthy because creditors, banks, and financial advisors send different messages. As a result, the number of bankruptcies has increased in recent years. The Administrative Office of the US Courts reported that nearly a million people filed for personal bankruptcy from March 2007 to March 2008, which represents a 30% increase from the previous year.

Managing credit and resolving debts can be intimidating. Fortunately, the Austin bankruptcy lawyers of Slater, Kennon & Jameson, LLP are here to help. Don’t wait, call 512-338-1100 today for a free consultation.

Crediting Pitfalls

While there is no pre-determined number that indicates “too many” credit cards, there are certain situations which may indicate that you are trying to balance a few too many. Here’s what to look out for:

• How high is your debt-to-income ratio? If you maxed out your credit cards and compared your debt to your income, what would the percentage be? If more than 37% of your income would go toward debts, you should consider closing some of your credit card accounts.
• Are you utilizing too much credit? Credit utilization is the amount of debt you have incurred divided by your total credit. Ideally, this percentage should remain below 30%.
• Are you consistently missing payments? Managing credit cards can be a big endeavor. If you have more than three credit cards, and you are struggling to keep up with payments, it may be wise to consider closing an account.

Contact Us

There are a number of ways you can get tangled up in credit traps. It is important that you fully understand all of your options before making a decision. If you are seeking additional information regarding credit card debt or bankruptcy, make an appointment with the Austin bankruptcy lawyers of Slater, Kennon & Jameson, LLP by contacting 512-338-1100