Impulse buying can lead to overspending on credit cards, and some people fall into the trap of keeping balances on multiple cards. Then making even the minimum payments could prove difficult after a job layoff or illness. Problems may continue to mount with job loss or illness, with possibly even more reliance on credit cards instead of personal savings. The result: excessive accumulated debt that could take years to repay.
Excessive debt can cause credit scores to drop. Generally, creditors like to see you spend no more than 30 percent of your available credit--on each individual credit card account. Spending more than that could be interpreted as living on credit or being irresponsible with your spending.
Overspending on your credit cards could cause you to use a large part of your available credit. Then, if you make only the minimum monthly payments, you could find yourself lacking enough available credit when you need it most--during an emergency such as an unexpected home or auto repair.