Danger Signal #1
Your credit card balance increases while your income is the same or decreasing. When you can no longer pay the balance off each month, stop using your cards and use whatever cash you have available to get through the month. Stop when the cash runs out unless there is an emergency. Simply do not take out your credit cards. Diminishing disposable income will suffer greatly if the bills from your credit cards are added to it each month.
Danger Signal #2
You are unable to pay more than your minimum balance on the card debts. This is when it should become obvious that your cash problem has started.
Danger Signal #3
You borrow on one card to pay on another. There is nothing wrong with taking advantage of a 0% balance transfer in order to pay off debt faster. There is something majorly wrong when you are borrowing money or taking cash advances in order to pay other debts.
Danger Signal #4
You have more than 5-6 credit cards. Ideally, you should not have (or use) more than two credit cards in your life. There are many who advocate the use of only one card for emergency purposes only. When you have too many operational cards, you can easily over spend and find yourself in a financial mess.
Danger Signal #5
You are finding that you are using your credit for grocery bills. There is nothing wrong with getting cash back and using a credit card at the grocery store, but if you can not pay the balance off in full each month, then this is a major indication that there is a problem.
Danger Signal #6
Your credit card payments keep you working overtime. If you notice that you do not have sufficient funds to cover your credit card payments each month, and are working overtime or more than one job, than you are completely overextended.
Danger Signal #7
You are close to the limit on all of your credit cards. When you find you have topped the limits of your credit cards, then obviously your income is not sufficient enough to take care of your spending. You are spending too much in between paychecks.
Danger Signal #8
You are gambling and paying the debts with the credit cards. Never pay your gambling debts with credit cards. Never.