Since credit card debt is a form of unsecured debt – which cannot be taken away if you default on payments. This means you should take your borrowing seriously to avoid accumulating high debt unnecessarily because you will eventually have to pay it off.

The team at Lendah is here to explain the risks, benefits, and misconceptions that are associated with credit card debt:


Credit card debt is an example of revolving debt. The reason revolving debt is considered risky is because it rolls over into the next payment cycle with added interest. The interest on credit cards can fluctuate and produce high rates, which can make debt difficult to pay off over time. You aren’t forced to pay back what you owe each month, so with each missed payment you can fall deeper into debt. 

Consider the long-term impact of your spending, and keep in mind that you can negatively impact your credit score with late or missed payments. Unless it’s necessary, recognize that making purchases that exceed your monthly income may not justify taking on more debt.


Despite the risks, credit card debt can improve your financial health. When you take on credit card debt, you are making a commitment to pay back what you owe. As long as you don’t exceed what you can afford with your monthly income, credit card debt can be managed easily. Your ability to pay off credit card debt habitually reflects a healthy financial responsibility. This is favorable to lenders and may give you better options when taking out personal loans or opening a new line of credit in the future.

Plan your expenses to ensure that you can pay off what you owe. Making regular, on-time payments can improve your credit score, help you avoid interest fees, and reduce your risk as a borrower. 

Common Misconceptions

A common misconception of credit card debt is that having a credit card means you can spend as much as you want. Despite having the capability to do so, you should not spend more than you can afford to pay back. Another misconception is that people with good credit scores don’t have high credit balances. You can have high credit card debt and a good credit score at the same time. As long as you maintain a low credit utilization ratio, you don’t need to have a zero balance to have a decent credit score.

Debt Consolidation Loans Help

If you are concerned about credit card debt and are not sure how to navigate the risks, consider a debt consolidation loan to help you pay it off. Not only will you eliminate risks, like revolving debt and high interest rates, but you will also have an easier time paying off what you owe with fixed monthly payments. Debt consolidation loans restructure your credit card debt and help you by consolidating the balance into one monthly payment within your budget.

Looking for a solution to help pay off your credit card bills? Lendah can help reduce credit card debt and improve your credit score with a debt consolidation loan. Through a network of over 30 lenders, we find loan options that fit your budget and keep you on track to becoming debt-free.

If you have questions about debt consolidation loans, speak to our team of knowledgeable professionals. Our compassionate loan matchmakers will find the best terms tailored to your unique situation – with fast approval and rates starting as low as 3.84% for amounts up to $100,000. 

Get started today on our website. Prefer to talk in person? Call us at 833-453-6324, and we’ll get you connected immediately with one of our loan experts.