Many Americans are relying on multiple forms of credit to cover expenses. When is it a warning sign?

We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. By Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio September 23, 2026 / 9:11 AM EDT / CBS News Add CBS News on Google Certain patterns can indicate that your borrowing has shifted from a financial tool to a financial crutch. Getty Images/iStockphoto Credit can provide you with necessary breathing room when your budget is tight, whether it's used to cover an unexpected bill or spread a larger expense across several months. But when the financial pressure won't let up, what may have started as occasional borrowing can gradually turn into something more routine. And, before long, you may be relying on several different sources of credit to cover expenses while also trying to keep up with the payments on what you've already borrowed.That's becoming a real issue for many borrowers right now. Case in point? About 42% of adults with at least $10,000 in unsecured debt regularly use a credit card or borrowed money to cover essentials like groceries, gas or utilities, according to a new survey from Accredited Debt Relief. And, nearly three in 10 rely on credit or borrowing every month just to get through a typical month, while 33% say they're relying on credit more than they were a year ago.But using multiple forms of credit doesn't necessarily mean you're headed for serious financial trouble. Credit cards, personal loans and other options can all have legitimate roles in a financial plan, and there isn't a specific number of accounts that automatically signals a problem. So, how do you know when using multiple forms of credit is less of a tool and more of a warning sign for your finances?Learn how Accredited Debt Relief could help you with your debt today.Many Americans are relying on multiple forms of credit to cover expenses. When is it a warning sign?The number of credit accounts you have matters less than what is happening across them. If you're making your payments comfortably and reducing your balances as planned, using different types of credit may not be cause for concern. But certain patterns can indicate that your borrowing has shifted from a financial tool to a financial crutch. Here's what to watch for:You're using one form of credit to make room for anotherOne of the clearest warning signs is when your debts begin to depend on each other. You might use a credit card for groceries because your checking account is needed for a personal loan payment, for example, or put a utility bill on a card because several buy now, pay later installments are due soon. That type of juggling can temporarily keep every account current, but it doesn't address the underlying shortfall. Rather, it can turn today's expenses into future monthly payments, leaving even less room in your budget going forward.Find out more about your options with Accredited Debt Relief now.Your balances keep rising even though you're making paymentsBorrowing doesn't necessarily become problematic just because you carry a balance. The direction that balance is moving in, though, can tell you much more. If you're consistently paying down an installment loan or paying your credit card balance in full, your debt may be working as intended. But if your total debt keeps climbing despite making payments each month, it may signal that you're borrowing faster than you can repay.That's particularly concerning when the increases aren't tied to one-time purchases. If routine costs like groceries, gas, utilities and other essentials are regularly adding to your balances, your income may no longer be sufficient to cover both your living expenses and existing debt obligations. Minimum payments are taking over your budgetAnother warning sign can emerge before you miss a single payment. As you add credit cards, loans and other financing arrangements to the mix, each account comes with another required monthly payment. Eventually, those obligations can consume enough of your income that there's little money left after the minimums are paid. That can leave you dependent on your available credit for expenses you would normally cover with cash, effectively creating a cycle in which debt payments lead to more borrowing.You're sacrificing necessities to keep your accounts currentCutting discretionary spending can be a reasonable way to free up money for debt repayment. But there's an important difference between skipping restaurant meals and skipping out on necessities. If you're regularly sacrificing essential expenses or draining your emergency fund simply to make debt payments, the problem may have moved beyond what ordinary budget cuts can solve.You need new credit to keep the system workingPerhaps the most important question to ask is what would happen if you couldn't borrow any more money. If losing access to a credit card, personal loan or other financing would immediately make it difficult to pay your bills, that's a strong indication that your budget has become dependent on borrowing.At that point, it may make sense to consider strategies that address the debt itself. Depending on your situation, that could mean contacting creditors about hardship options, working with a nonprofit credit counselor, consolidating high-rate balances or exploring debt relief for unsecured debts that have become difficult to repay. The right approach will depend on your balances, credit profile and ability to make payments, but waiting until accounts are delinquent can leave you with fewer options.The bottom lineUsing multiple types of credit isn't inherently a sign of financial trouble. The bigger concern is when those accounts stop serving separate purposes and start propping one another up. Rising balances, growing minimum payments, borrowing for routine necessities and taking on new debt to keep existing accounts current can all indicate that your debt load is becoming harder to sustain. Recognizing that shift early can give you more time — and potentially more options — to get your finances back on firmer footing. Edited by Matt Richardson