How Much Debt Is Too Much? How (The Wrong) Debt Can Negatively Impact Your Life

From the cost of housing to groceries, life is anything but cheap these days. For many of us, it can be easy to let debt creep up…. But exactly how much debt is too much?Knowing How Much Debt Is Too MuchYou may have a nagging feeling that you’ve taken on too much debt — or breathing space to feel like you could take on a little more. But in fact, knowing how much debt is too much starts with calculating what’s called your “debt-to-income ratio.” This looks at how much debt you’re responsible for paying each month compared to what you earn monthly. In general, experts say your debt-to-income ratio should be less than 30%.There are also other signs to watch out for that indicate you may be in over your head. “The more lagging indicators that are more of a flashing red light are: you're making minimum payments on credit cards, you're robbing Peter to pay Paul, you're taking out loans to stay current on other obligations, or you're borrowing from retirement,” explains Greg McBride, Chief F...