Credit card debt: How much is too much? Here's what experts say

(NewsNation) — The average person owns nearly four credit cards, according to Experian, one of the three major credit reporting bureaus. And the average debt one person owes equals more than half of the median American household income.

Some may wonder if they have "too much" debt on their cards.

How much credit card debt is too much?

Owning a credit card is essential to building your credit score, which impacts your ability to apply for home loans or rental applications, auto loans and even cell phone services with companies that require contracts.

Each consumer's financial situation is unique and debt is relative to income.

If you have more debt than you have in income, you may have too much debt to be able to pay off, which will hurt your credit score.

NerdWallet has an online calculator to help you generate a debt-to-income ratio.

If your result is less than 36%, your debt load is affordable, according to NerdWallet. If it's between 36% and 50%, consider taking action, such as consulting a nonprofit credit counseling service, to reduce your debt. Fifty percent or more is "high risk," NerdWallet says and suggests getting advice from a bankruptcy attorney.

Common signs you have too much debt

A debt balance that doesn't go down despite regular payments is a common sign of having too much debt as interest accrues.

If you're living paycheck to paycheck and have little to no money for minimum monthly credit card payments, you may have more debt than is recommended for your budget.

Using credit cards for cash advances could also be a sign of having too much debt, according to NerdWallet.

What to do if you have a lot of debt

If you find yourself struggling to pay off debt, there are a host of options to consider.

1. Balance transfers are an option to reduce interest while you continue making payments. Plus, it consolidates what you owe into one account, making it easier to manage.
2. Nonprofit credit counseling services can help you come up with a plan that fits your budget. There may be a cost associated with the service, but experts recommend this over seeking for-profit debt settlement companies.
3. Negotiate a lower interest rate with your creditor. There is no guarantee a bank or credit institution will grant a lower interest rate after you already owe a balance, but it's worth a shot. “About 80% of the time, if you ask for a lower interest rate, you get one,” said Ted Rossman, a senior industry analyst at Bankrate. “The big asterisk to that is: How low are they going to go?” he told Nexstar's NewsNation recently.
4. Choose a payment strategy that fits your financial budget best. Some prioritize paying off the debt with the highest interest rate first and then paying off the next highest-interest debt. This is called the avalanche method. Some choose to pay off debt with the smallest balance and then move on to paying the next lowest balance and so on. This is called the snowball method.