Save Money Seven signs you’re in debt over your head
Indicators that your debt is a problem: • Your credit card balances keep rising. It’s best to pay credit cards in full every month. • At least one credit card is maxed out. • You can’t pay more than the minimums. • You can’t afford to save for an emergency fund.
• You’re late on bills because you didn’t have enough money on the due date. • You applied for credit and were rejected. • You’re getting offers for credit cards for people with damaged credit. HOW TO GET OUT OF DEBT Take inventory: First, make a list of every debt you have, along with the interest rate and minimum payment. Then, list your income and expenses for each month to assess your financial obligations.
Find where you can trim expenses.
Do the math: Can you successfully pay off this debt? If it’s more than 50 percent of your income, bankruptcy may be a more reasonable path. NerdWallet