{"id":1410,"date":"2018-02-22T05:50:41","date_gmt":"2018-02-22T13:50:41","guid":{"rendered":"http:\/\/www.checkworks.com\/blog\/?p=1410"},"modified":"2018-04-19T11:30:24","modified_gmt":"2018-04-19T19:30:24","slug":"warning-signs-that-your-debt-is-getting-out-of-control","status":"publish","type":"post","link":"https:\/\/blog.checkworks.com\/index.php\/warning-signs-that-your-debt-is-getting-out-of-control\/","title":{"rendered":"Warning Signs That Your Debt Is Getting Out Of Control"},"content":{"rendered":"
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If you’re like most folks in the United States, you may have some debt. For may people, some debt is fine. But for others, it can be a real financial burden. Is your debt getting out of control? Read further to see if it it and learn about some tips for getting your debt back in check.<\/div>\n
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Warning Signs for People With Debt<\/strong><\/div>\n
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The following symptoms or conditions may indicate your debt is out of control:<\/div>\n
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  • Your debt is causing you stress, even to the point of losing sleep.<\/li>\n
  • You are not saving regularly from you paycheck because you need the money to finance your debt.<\/li>\n
  • Your emergency fund has run out and your debt is still out of control.<\/li>\n
  • You use your credit cards to pay off debt and now they are maxed out.<\/li>\n<\/ul>\n

    If these or other emotionally painful experiences are haunting you, you may need to get a better handle on your debt situation.<\/p>\n<\/div>\n

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    Types of Debt<\/strong><\/div>\n
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    Everyone is different so that means that there is no one hard-and-fast rule regarding how much debt is too much for any one individual or family. Nonetheless, it is often useful to think in terms of three types of debt: Good Debt, Bad Debt, and Toxic Debt. Let’s examine these:<\/div>\n
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    • Good Debt: Debt that is taken on to buy something that generally increases in value, such as a home or business.<\/li>\n
    • Bad Debt: Loans taken on at very high interest to buy things that decrease in value or are rapidly used up.<\/li>\n
    • Toxic Debt: Debt with sky-high interest rates and\/or debt you simple cannot afford.<\/li>\n<\/ul>\n

      Debt\/Income Ratio<\/strong><\/p>\n

      A good yardstick to use when thinking about your debt is your Debt\/Income Ratio. If it is 15% or less, you are likely using debt wisely. If it is greater than 50%, you are likely having a problem with too much debt. What is your Debt\/Income Ratio?<\/p>\n<\/div>\n

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      Tips for Effectively Managing Your Debt<\/strong><\/p>\n

      Here are some useful tips to keep in mind when considering taking out a loan for several common needs or wants:<\/p>\n<\/div>\n

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      • Housing: Limit your housing costs to 35% of your income or less. If it is too high, consider refinancing your mortgage.<\/li>\n
      • Cars and Other Vehicles: Most experts suggest that car loan expense should remain below 20% of your take-home pay. If your debt level is beyond this consider refinancing or buy a less expensive vehicle.<\/li>\n
      • College and Other Education: Here’s a simple rule: Don’t borrow unless you have to! If you need to finance your college or trade-school education, take on no more debt than you expect to earn in your first year working after college.<\/li>\n<\/ul>\n

        In conclusion, debt can be a good thing or a real detriment to your financial well being. By considering the type of debt you are incurring, and by calculating your Debt\/Income Ratio, you may be better able to assess your risks. Above all, stay away from Bad Debt and especially Toxic Debt.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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        <\/p>\n","protected":false},"excerpt":{"rendered":"

        If you’re like most folks in the United States, you may have some debt. For may people, some debt is fine. But for others, it can be a real financial burden. Is your debt getting out of control? Read further to see if it it and learn about some tips for getting your debt back […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/1410"}],"collection":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/comments?post=1410"}],"version-history":[{"count":3,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/1410\/revisions"}],"predecessor-version":[{"id":1414,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/1410\/revisions\/1414"}],"wp:attachment":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/media?parent=1410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/categories?post=1410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/tags?post=1410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}