Managing Debt – Do You Have Too Much Debt?
Most people have some kind of debt. It might be in the form of a mortgage, an auto loan, a student loan, or even a credit card balance. Having debt isn’t a bad thing as long as you are taking steps to pay it off. It’s having too much debt that can cause an unhealthy financial life. Taking the time to determine whether or not you have too much debt can provide confirmation that you are doing things right or the realization that some financial changes are needed. Do You Have Too Much Debt One of the best ways to calculate your debt load is by figuring out your debt-to-income ratio. This is the amount of debt you have relative to your income. You can calculate your debt-to-income ratio including good and bad debt, or you can leave out good debt. If you want to gauge your debt overload, it’s typically better to calculate the ratio considering only bad debt. On th
