{"id":2034,"date":"2025-08-01T07:52:02","date_gmt":"2025-08-01T07:52:02","guid":{"rendered":"http:\/\/ft365.org\/index.php\/2025\/08\/01\/how-to-stop-the-cycle-of-maxing-out-your-credit-cards-bankrate\/"},"modified":"2025-08-01T07:52:02","modified_gmt":"2025-08-01T07:52:02","slug":"how-to-stop-the-cycle-of-maxing-out-your-credit-cards-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/08\/01\/how-to-stop-the-cycle-of-maxing-out-your-credit-cards-bankrate\/","title":{"rendered":"How to stop the cycle of maxing out your credit cards | Bankrate"},"content":{"rendered":"
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Five years ago, Taylor Gothard, 41, and his spouse found themselves staring at $100,000 in credit card debt spread out over 17 maxed-out credit cards. When it comes to debt like this, they\u2019re not alone. Nearly 40 percent of cardholders have maxed out a credit card or come close in the last few years, Bankrate\u2019s Credit Utilization Survey<\/u> found.<\/p>\n

One of the worst traps that can land you in debt is applying for \u2014 and receiving \u2014 credit cards and then maxing them out. So how do so-called credit card \u201cmaxers\u201d end up in this vicious cycle of accumulating cards, running up their balances and struggling to repay them?<\/p>\n

There are many reasons, from emotional stressors and misunderstandings about how credit cards work to systemic challenges, says Lindsay Bryan-Podvin, Cash App\u2019s financial therapist and founder of Mind Money Balance.<\/p>\n

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In the personal finance world, there tends to be a lot of blame directed at individuals who max out their credit cards. [They] are framed as irresponsible or obsessed with keeping up with the Joneses.<\/q> \u2014 Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance <\/cite> <\/p><\/blockquote><\/div>\n

However, credit cards can feel like a lifeline when navigating major life transitions (like divorce or job loss) or when facing underpaid or unstable employment, says Bryan-Podvin. \u201cBigger systemic issues, such as the high costs of medical care, can also contribute to maxed-out credit cards,\u201d she says.<\/p>\n

If you find yourself in the same position as Gothard and so many others, here\u2019s what it takes to not only dig yourself out of debt, but how to stop repeating the pattern.<\/p>\n

Good intentions, bad results<\/h2>\n

When you get your first credit card<\/u>, it\u2019s exciting. You\u2019re building your credit, you\u2019re careful about card spending, and you either make regular payments or pay off your monthly balance.<\/p>\n

Then you get comfortable swiping your card at stores, restaurants, for travel and more, because it\u2019s easy<\/u>. You notice that your spending \u2014 and your credit utilization<\/u> \u2014 is rising, and you\u2019re approaching your credit limit. But you justify the spending because you feel you\u2019re still in control, even though it\u2019s costing you.<\/p>\n

Card offers \u2014 especially those with generous welcome bonuses \u2014 are tempting, so you add more to your wallet. You believe you\u2019re still in control, but there\u2019s pressure to maintain a lifestyle \u2014 travel, dinners, shopping and more \u2014 that\u2019s funded by your growing portfolio of credit cards.<\/p>\n

People are social creatures, and belonging matters tremendously, says Bryan-Podvin. <\/p>\n

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When a person spends to keep up with the Joneses, I often see it as a desire for connection and a sense of belonging. If someone falls into this category, I find it much more helpful to get curious about their desire to belong than to shame them for overspending.<\/q> \u2014 Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance <\/cite> <\/p><\/blockquote><\/div>\n

But if someone is experiencing financial hardship, swiping a card can be about survival, says Bryan-Podvin. \u201cEven though the behavior \u2014 charging more than you can pay off \u2014 looks the same on the outside, the `why\u2019 underneath it can be wildly different,\u201d she says.<\/p>\n

The road to credit card maxing<\/h2>\n

Gothard was only 12 years old when he got his first credit card. \u201cIt was a Capital One Mastercard that my parents gave me as an authorized user, with a $300 limit.\u201d<\/p>\n

As a child, Gothard took regular out-of-state, multiple-day field trips with his magnet school. \u201cMy parents wanted me to have a safe way to travel without having to rely on travelers\u2019 checks or cash. When you\u2019re a young teenager in a big city, you\u2019re a prime target for pickpockets.\u201d<\/p>\n

Playing the points and miles game in early adulthood was the next step, said Gothard. \u201cI wanted to unlock fun travel experiences,\u201d he says. \u201cOur air tickets were all paid for by air miles that we received through credit card programs, and we were both responsible when managing those cards.\u201d<\/p>\n

Between Gothard and his spouse, they eventually had seven Capital One credit cards. \u201cFor a long time, the [cards] were on promotional rates, so either 0 percent or really low interest rates. Early on, it was pretty easy to pay off the balance each month,\u201d he said.<\/p>\n

Then, there was a job loss that lasted six months and threw them for a loop. \u201cWe [originally] felt we were pretty safe with our incomes, so we had just signed a new lease at our same apartment complex, moving up from a one bedroom to a two bedroom, which was significantly more expensive,\u201d Gothard says. \u201cAt that point, we were relying on our credit cards to make ends meet until the unemployment was over.\u201d<\/p>\n

Maxer warning signs<\/h2>\n

Regardless of the circumstances that lead to carrying credit card debt, Bryan-Podvin sees common signals in people who are losing control of their card spending, including:<\/p>\n

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  • Actively avoiding banking or credit card statements, mail notices and phone calls <\/li>\n
  • Reflexively putting expenses on a card without first checking whether it\u2019s an expense you can afford, which signals a habit instead of an intentional decision<\/li>\n
  • Playing a financial shell game by opening up new balance transfer<\/u> or 0 percent interest rate<\/u> cards or personal loans without having a plan to pay them off<\/li>\n
  • Lying to people who should know about your finances regarding the reality of your credit card debt <\/li>\n<\/ul>\n

    \u201cThis doesn\u2019t mean your neighbor needs to know your financial reality, but if you\u2019re actively hiding this from your spouse, it\u2019s a problem,\u201d she says.<\/p>\n

    As a result of this rising debt, your credit score plummets and applying for new credit cards is no longer an option. Your bills pile up, but your income doesn\u2019t. Before you know it, your credit cards are maxed out, and you\u2019re facing challenges including home eviction, having your car repossessed or even losing your job.<\/p>\n

    Shame also plays a huge role in people who max out their credit cards, says Bryan-Podvin. \u201cShame tells us we\u2019re \u2018bad with money\u2019 instead of \u2018a person who overspent on a credit card,\u201d she says. \u201cThat kind of financial shame makes people freeze or spiral with thoughts like, \u2018Why bother? You\u2019re already in too deep.\u2019\u201d<\/p>\n

    Denial is a short-term protector from overwhelm or discomfort, says Bryan-Podvin. <\/p>\n

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    The problem is that denial can keep us frozen in the long term. Many of my clients avoid looking at their balances or skip conversations about money because they find it too painful or awkward. Instead, it’s important to say, \u2018Yes, this might be uncomfortable. And, we need to get clear on what’s actually going on so you can start taking healthy action.\u2019<\/q> \u2014 Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance <\/cite> <\/p><\/blockquote><\/div>\n

    Digging out of debt <\/h2>\n

    Taking charge of your maxed-out cards means getting honest about where you stand financially. Gather your latest credit card statements, add up what you owe and then stop using your cards. Download an app<\/u> or create a spreadsheet to track how you\u2019re spending your money so that you can create a realistic budget and figure out the best way to tackle your debt<\/u>. Possible strategies include:<\/p>\n

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    • Using the snowball or avalanche<\/u> debt payoff methods<\/li>\n
    • Getting a part-time job or side hustle<\/u> <\/li>\n
    • Getting debt consolidation loan<\/u> <\/li>\n
    • Starting the process of debt settlement<\/u> <\/li>\n
    • Creating a debt management plan with a nonprofit credit counseling organization<\/u> <\/li>\n
    • Negotiating with card issuers<\/u><\/li>\n
    • Seeking help from a financial therapist<\/u> <\/li>\n
    • Starting the process of Chapter 7 or Chapter 13 bankruptcy<\/u> <\/li>\n<\/ul>\n

      Gothard and his spouse discovered their cards with promotional rates were expiring or had expired, and their card payments were no longer manageable, even though they were still making minimum payments. <\/p>\n

      \u201cWe were well aware of the debt we were accumulating and saw that our balances weren\u2019t coming down,\u201d he says. \u201cAt that point, I said if we\u2019re going to do anything to make things better for us in the long term, we need to put our cards in the sock drawer or cut them up and set ourselves up for success.\u201d<\/p>\n

      Gothard chose nonprofit debt counseling agency Money Management International (MMI) to help him and his spouse pay back their ballooning credit card debt. \u201cOut of all our options, MMI had the best relationship with Capital One, which is where the bulk of our debt was. Other services charged a 10 percent interest rate, while MMI was only 1.9 percent, which was a significant savings,\u201d he says. \u201cMMI\u2019s monthly fees were much less than the competition, at $25 a month.\u201d<\/p>\n

      Breaking the cycle<\/h2>\n

      Of course, it\u2019s not enough to pay off your maxed-out credit cards. You also need to face \u2014 and fix \u2014 the bad habits that caused the debt in the first place. Life happens, so don\u2019t allow shame and fear to keep you from getting help.<\/p>\n

      It takes time, but you can pay off your credit cards \u2014 I\u2019ve done it<\/u>. But you must also avoid sliding back into old habits by learning new ones that encourage strong financial health for the long term. Strategies for doing that include:<\/p>\n