High credit card balances are not a good thing to be toting around. Being deep in credit debt can be a place that is hard to climb out of, and there are lots of reasons you should avoid putting yourself in that position. Let’s go over a few:

1. It can make you look bad. Owing lots of money to different credit card companies does not reflect well on your credit report. About 30% of your credit score is based on your credit debt, and the more you owe the lower your score will be.

2. You’re blowing a lot of money in interest. Your high credit debt is generating lots of cash for the credit card company, and this is money that could be going to your principal balance. The bigger your balance, the more money the credit card company is taking from your pocket. You may want to consider a balance transfer to a card with a lower interest rate.

3. High credit debt can affect other purchases. If you already owe a lot of money on your credit card, it can be difficult to get approved for other financial endeavors, like purchasing a new car or home.

4. It’s hard to pay more than the minimum payment. As your balance increases, so does your monthly minimum payment. With many credit cards, when you pay just the minimum payment, most of your hard-earned cash is going toward interest rather than your principal balance. This makes it increasingly difficult to pay down your debt, which leaves your high balance intact. It’s always a good idea to pay more than the minimum payment so more money is going to your principal, but having a high balance can make this very difficult for some people.

5. It becomes easy to despair. High credit debt can be very overwhelming, and being reminded every month of how much you owe can lead to despair. Nobody wants to feel this way, so it’s better to not fall into that high balance rut.

Remember, it’s best just to steer clear of racking up those high balances on your credit cards. It’s easy to do it, and hard to undo it. Balance transfers can sometimes help a high debt situation by offering lower interest rates, but get all the information you can first. Making wise and informed choices is the best thing you can do to avoid high credit debt.