How much debt is too much debt? Depends who you ask. Some would
say "any". Others would give you a percentage of your income (which is probably
why expenses always rise to meet income).
There are some things undeniably worth going into debt for. They
are investments such as your home, or your education. Everything after that is
The financial institutions have their formulas for how large a
mortgage payment we can make, based on our income to debt ratio. There does come
a point when we can no longer pay our bills if we have too much debt, and we are
There are signs that indicate when we are getting into
*We start making only the minimum payment on our charge cards.
We transfer balances from one card to another.
*We max out our credit cards.
*A large amount of our money is going to pay our credit bills,
leaving us little for anything else.
*We are juggling bills- paying some late- bouncing checks.
Finally, money becomes a source of anxiety, often ruining our
health, good natures, and relationships.
There are many reasons people lose control of their finances.
Sometimes it is through no fault of their own. Other times it is through
behaviors that have to be unlearned. Whatever the reason, it is painful and
difficult to get things under control again.
Here is a great quote
Some debts are fun when you are acquiring them,
but none are fun when you set about retiring them
Overcoming poor money management and getting out of debt can be
a physical and mental challenge worth of an Olympian. Every time we learn a new
way to save money it is almost like "found money". Benjamin Franklin was so wise
when he said "A penny saved is a penny earned".