Anyone who’s ever maxed out a credit card knows the unique pain it brings. There’s deep frustration. There’s shame and embarrassment. There’s the fear of looking at a credit card statement and seeing a balance that brings a sense of helplessness.
But there’s also the reality: A maxed out credit card is a common problem, and you can find ways to cope with it — both financially and emotionally. In fact, experts say there may be more to the emotional side of things than you might give credit for.
We spoke with Dr. Megan McCoy and LaQuishia Clemons, two certified financial therapists, for advice on how people with high credit card balances can move forward and make a plan to pay them off. Here’s what they shared, including the tips they offered on coping with maxed out credit cards.
Americans maxing out their credit cards
A maxed out credit card limit is a somewhat common problem. Almost 2 in 5 cardholders (37 percent) have maxed out a credit card or come close since the Fed started raising interest rates in March 2022, according to Bankrate’s 2024 Credit Utilization Survey.
Additionally, as of June 2024 polling, half (50 percent) of credit card users carry credit card debt from month to month, according to Bankrate’s latest Credit Card Debt Survey.
Over half of cardholders who’ve maxed out their credit card or come close since March 2022 (54 percent) say inflation or high prices are to blame. Other common reasons include emergency expenses (38 percent), carrying a balance or having credit card debt (32 percent) and job or income loss (25 percent).
The most common consequence of it all? Stress. Specifically, 51 percent of those who maxed out their credit cards or came close reported feeling stressed about their finances.
However, according to Dr. Megan McCoy, an assistant professor at Kansas State University’s personal financial planning program, this road goes both ways.
McCoy is a licensed marriage and family therapist, an accredited financial counselor and a certified financial therapist. She has published over 40 articles on mental health, family science, financial counseling, and financial planning journals.
Mental health and maxed out credit cards
A maxed out credit card is perhaps as much an emotional issue as it is a financial one.
For people struggling with mental health issues, such as anxiety or depression, impulse control might be more challenging — and that applies to their spending too. Plus, they might be overspending to make themselves feel better, McCoy says.
On top of it all, using a credit card feels easy. Whether it’s to pay for an emergency expense or an unplanned purchase, it almost doesn’t feel real. There’s no cash exchanging hands. The balance on your checking account remains the same.
“When we give someone our credit card, then we actually get it back right away,” McCoy says. “It doesn’t hurt as much to just spend on a credit card than it does with cash.”
Of course, that sense is false. And that truth can be hard to face.
Oftentimes, cardholders with maxed out cards will avoid looking at their card statements, according to LaQueshia Clemons, a clinical social worker and an accredited financial counselor. Clemons runs Freedom Life Therapy and Wellness, a private practice specializing in financial therapy.
Such avoidance can cause people to move on from one card to another, Clemons says. That cycle can continue until they can’t afford their minimum payments anymore. The debts pile up along with new layers of anxiety.
That’s when the creditors, the credit card companies, are calling you. You’re getting letters from courts because now they decide they want to sue you, which all leads to just an additional layer of stress.
— LaQuishia Clemons, clinical social worker and accredited financial counselor
As you can see, with enough denial, maxing out a credit card can turn from a coping mechanism into serious financial – and mental — challenges. For that reason, it’s best to face the problem head-on as soon as you can.
How to get out of the cycle
Since maxing out a credit card is both a practical and emotional issue, it requires “both problem-focused coping and emotion-focused coping,” McCoy says.
With that, here are both types of solutions the two therapists recommend:
The bottom line
Many Americans are all too familiar with the dread of maxed out credit cards. If you’re one of them, don’t feel embarrassed.
We’re all human. We’re going to make mistakes, and no matter where you are in your journey, it’s never too late to correct that mistake.
— LaQuishia Clemons, clinical social worker and accredited financial counselor
Focus on solutions by doing what’s best both for your mental health and your wallet. Track your spending and write down a plan. Seek extra support if you need to.
“Just remain consistent and you will get there,” Clemons says. “It may take some time, but that’s okay.”
