How Much Debt Is Too Much? Spot the Red Flags

Your DTI is monthly debt payments divided by gross income. Over 36 percent and lenders get nervous. Over 43 percent could block loans. Example: 500 dollars debt on 2000 dollars income equals 25 percent (good). 800 dollars equals 40 percent (too high). Tip: Tackle high interest debt first to drop it quick.

This shows how much of your credit limit you use. Over 30 percent dings your score and makes borrowing pricier. Example: 3000 dollars balance on 10000 dollars limit equals 30 percent (on the edge). Tip: Pay off monthly or request higher limits if you handle it well.

If half your take home pay goes to debt, trouble brews. Not much left for life or surprises. Example: 1500 dollars debt on 3000 dollars net pay equals 50 percent (warning). Tip: Trim spending or grab a side hustle to loosen up your cash.

Cards for groceries or bills? That's a sign you're over your head and adding interest hurts more. Tip: Start a tiny emergency fund of 1000 dollars and track spends to match your real cash flow.

Sticking to minimums lets interest grow and drags debt out forever. If that's all you can do, it's overload. Tip: Try debt snowball. Pay smallest first for fast wins and motivation.

Good debt like mortgages builds wealth. Bad like high interest cards drains it. If bad wins, rethink. Tip: Combine high rate debts to cut interest and clear faster.

Debt keeping you up? It's too much no matter the number. Tip: Chat with free counsellors from groups like NFCC for custom plans and relief.

Spot these signs? Jump on it now. See an advisor, use tracking apps, or explore debt help. Small steps like budgeting flip the script. You've got this!