Credit Card Balance Too High? Avoid Default & Protect Your Credit Score

• High credit card balance can negatively impact your credit utilization ratio and credit score.
• Experts advise keeping credit card utilization below 30% of the total limit to maintain a good credit score.
• Making only minimum payments increases the credit card balance and the risk of default over time.
• If your credit card balance is high, stop using the card and create a plan to reduce it, potentially using savings for installment payments.
• Defaulting on credit card payments severely damages your credit score, making future loan applications difficult or more expensive.

Why It Matters: Ignoring credit card debt ruins your credit score and future financial options.