 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Avoid New Debt\n--------------\nIf you're stuck with maxed-out credit cards, this is a good time to lie low and not apply for new credit until you get a handle on your current debt. Not only would a new lender see that you have a high credit utilization rate on your revolving credit lines, but your credit score likely experienced a dip due to the maxed-out cards, making it trickier to get approved for new credit. Credit utilization is a major factor in calculating your credit scores, and when your balances get closer to your credit limits on revolving lines of credit, your utilization ratio, or percentage of available credit you're using, can increase dramatically—ultimately bringing your credit score down.\nThe only exception to avoiding new debt is consolidating your existing balances to help you save money and get ahead of your credit card debt. A debt consolidation loan could help you save money on interest over time and help you streamline repayment if you have multiple cards that are maxed out. This method could backfire if you consolidate debt but continue to spend on your freed-up credit card lines, however. So be sure to halt all credit-based spending if you can while you're in the process of getting a handle on your debt. END