How do I know when I have too much debt?
The easiest way to know if you have too much debt is by calculating your debt-to-income ratio. It is a ratio between your total debt or total monthly payments divided by the net effective income. If your debt-to-income ratio is more than 45%, it is a sign of having too much debt.
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Frequently Asked Questions
- What is credit?
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- My credit record is not good, but there are lots of ads offering credit to people like me. Are there any kinds of credit I should avoid?
- How do I know when I have too much debt?
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- What Is the Periodic Rate?
