For many people, carrying some debt is normal, but when balances are too high, it can feel like a relentless burden. If life seems particularly expensive right now, you’re not alone. According to the Federal Reserve, total household debt reached $18.8 trillion, rising by $191 billion in the fourth quarter of 2025. Additionally, mortgage balances went up by $98 billion, hitting the $13.17 trillion mark, while credit card debt went up by $44 billion, hitting $1.28 trillion.
It’s hard to admit when you need help, but if you can relate to these five warning signs about debt, then it’s time to consider credit counseling.
Defaulting on Payments
While your credit score may not take a negative hit until your bill is 30 days past due, you’ll likely be impacted by late fees and penalties much sooner. Getting behind on payments is not a good habit to start, and can put you on a downward trend of missing your payments completely, making your credit score really take a dive.
Minimum Payments Only
If you’re only making minimum payments (and even that feels difficult), it may be time to seek professional help. Paying just the minimum stretches repayment out for years while interest continues to accumulate, meaning you could end up paying far more than you originally charged.
You Can’t Save
Savings are an important part of a budget, not only for future planning like retirement, but also when an emergency occurs, like an unforeseen repair or loss of a job.
You’re Using Credit Cards for Household Expenses
If you’re finding yourself using credit cards to pay for groceries, your electric bill, or auto loan (and more), then you should consider talking to a financial professional. Using credit cards to live is a significant sign that you need help.
Bankruptcy Seems Like the Only Option
When you’re dodging creditors and unable to pay the bills, the stress can be overwhelming, and bankruptcy can seem like the only option. But it really should be a last resort. Bankruptcy stays on your credit report for seven to 10 years and has a heavy impact on your credit score.
Schedule an appointment with a certified nonprofit credit counseling agency to review your options. A trained credit counselor can help you create a realistic budget and provide the support you need to move forward. If a debt management plan is recommended, your counselor will work with your creditors to consolidate your debt into one affordable monthly payment and reduce interest rates, helping you regain control with trusted, professional guidance.