The moment you start questioning whether you have too much Debt in your name, you should start thinking that you probably do. And having too much debt can end up leading you into other financial problems that you did not see coming. You will be in a financial crisis all the way throughout the entire time your debts keep rising. The main reason why debts always keep rising is that you may probably be taking more debt to clear up your due ones. And that fact alone will see to it that you stay wallowing in debt for a long part of your life. Here are some of the most common cases that you can use to know whether you have too much debt or not.

1. You can only afford to make the minimum payments

If you notice that you are the borrower who barely always makes the minimum payments on your Credit cards, then you are probably carrying too much debt. The best way you can counter this is by getting on the phone and requesting your lender to lower the interest rates on your loan. If you still have a good credit history and a decent job that pays on time, then the chances are high that your lender will work with you. But the moment you realize that even reaching the minimum payment amounts is a problem, you need to work out ways to counter that issue fast before you land into hotter soup with the lenders.

2. Almost all your money goes to the debt payments

You can take some time and figure out the total amount that you spend on debt every week. Also, pull out you’re your credit statements and reports and tally your minimum debt payments. After doing that, you can compare it to your monthly income and see where you lie. In a perfect world, financial experts suggest that your debt payments should not exceed 35% of your gross monthly income. So, if you find that you are spending well over 50% or even more to pay your debts every month, then you need to start thinking about making some financial adjustments. You will end up feeling nothing but exhaustion if you are only working to pay off your debt.

3. You pay your bills late

If the main reason behind this fact is that you barely always have any money to pay on time, then you probably have too much debt. But paying your www.lendgreen.com debts late only ends up making the debt problems much worse. You will now have to deal with the late payments plus higher interest rates that may be imposed on your loan. You may end up hurting more and for a lot longer than you initially thought as the late loan payment fees keep compounding every time you make late payments. Plus, not to mention the high-interest rates.

4. You are denied for new credit

You should know by now that the amount of debt that you owe also affects your credit score. This means that if you have a lot of debt under your account, then it will be very difficult for you to get new credit. And this means that your streak of credit approvals will quickly come to a swift end. Lenders and creditors will keep denying you new credit when they look at your credit report and decide that you have already overextended your current credit.

5. You have drained your savings

In as much as this might not mean that you have a lot of debt to deal with, it can also factor here as you may be using your savings to pay off some of your debts. And sooner or later, you will be left with little to no savings to get you out of a financial problem should you get caught in one.