Am I taking on too much credit card debt?

Am I taking on too much credit card debt?
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#1

I’m 27 and I work part-time while doing freelance work for a local newspaper. I have three credit cards, with limits of $4,500, $1,100 and $500, respectively. The $1,100 card no longer has a balance, as I transferred the $500 that was on it to the $4500 Amazon card, which currently has a balance of $2,000 total. I use that for my expenditures and just pay what I spent at the end of each month (I do have a couple thousand dollars in a checking account). Nobody I know is really an expert and I was just wondering if this was too much to have at my age. Just want a learned perspective.


#2

I’m not fully understanding your financial situation. Based on your question I can’t tell if you owe a total of $6,000 or a total of $3,600. Owing $3,600 is much better, of course. But, to answer your question, it looks like you are on the wrong financial track. This is especially true if:
(1) You do not have an emergency savings. You’ve got more debt than savings!
(2) You live with your parents: If you’re at home, none of the debt can be attributed for the expenses associated with living alone.
(3) You do not have children: The debt can not be attributed to the cost of raising kids.
(4) It’s not related to your transportation: Was any of the debt due to car repairs?
(5) This debt does not include student loans: Did you use the money to pay for tuition or books?
The above five circumstances could provide a difference perspective because each of them have added responsibilities. If you’re simply spending money without good reason, you are definitely on the wrong track. I hope that this helps!


#3

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