How much debt can you be in before you say that you're in trouble? Is there a certain amount?
2006-06-23 02:40:08 · 13 answers · asked by caring_jules 1 in Business & Finance ➔ Personal Finance
Consider all your credti cards and add all your credit lines.
Let's asume you have 5 credit card with $1000.00 credit lines.
You have a total credit of $5,000.00
You have to keep your current debt at $2,500.00 or lower AT ALL TIMES.
If your debt is higher than 50% of your credit then you are in trouble.
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2006-06-23 06:36:45 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Most financial institutions will not allow you owe out more than 30-35% of your gross income. They feel the 30-35% mark is at the high end of your debt to income ratio. Simply add up all your monthly bills, car payment, house payment or rent, personal loans, credit cards etc.(utilities are not included in this calculation.) Take that number and divide it by your gross monthly income. If the answer is higher than 35% you are in trouble or very very close to it. Without using the percentage method, if you are constantly late with payments, or have to use your credit card to make payments but cannot pay off the card each month you are most likely in trouble. Another bad sign is you can only pay the minimum payment on your credit card but the balance grows each month, this means you are charging more than you can afford to pay.
2006-06-23 02:54:59 · answer #2 · answered by Henry D 3 · 0⤊ 0⤋
Depends on how well you can handle and pay back the debt you are in. It's relative. A millionaires debt and a college students debt will be very different, but both can get in over their heads. I think Suze Ormand is the best for working out debt percentages.
2006-06-23 02:46:10 · answer #3 · answered by Robsthings 5 · 0⤊ 0⤋
Any amount is too much if you are refering to credit cards.
Overall the answer depends upon what you make. If your smart you will not have more that about 35% debt to income.
The banks will give you more but don't do it.
2006-06-23 02:44:10 · answer #4 · answered by John B 5 · 0⤊ 0⤋
i'd say when you start missing payments, you're in trouble....however, you can pay that "minimum balance" FOREVER and still not pay off the card, and i'd say that you're in trouble......i don't think there's a certain amount really, not without stating your income in the question.....
2006-06-23 02:44:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
When it's beyond your financial means to make all your monthly pymts or having to sacrafice to meet them. No certain amount, depends solely on your income.
2006-06-23 02:45:24 · answer #6 · answered by frustrated 2 · 0⤊ 0⤋
i would say if you are in more debt than you can pay that you are in trouble!
2006-06-23 02:43:47 · answer #7 · answered by cyndi b 5 · 0⤊ 0⤋
If you are sure that you can pay off it easily in the future,you aren't in trouble
2006-06-23 02:45:28 · answer #8 · answered by Anonymous · 0⤊ 0⤋
If you can't pay it back, it may be an indication you are already in trouble.
2006-06-28 10:07:49 · answer #9 · answered by Anonymous · 0⤊ 0⤋
the first time you thought about it. you have gone to far. the amount depends on the individual.
2006-06-24 14:11:19 · answer #10 · answered by cmac 3 · 0⤊ 0⤋