How do I know I have a debt problem?

If you’re wondering whether your debt is getting out of hand, there are several signs that will
alert you that there may be a problem.

Do you have a high debt-to-income ratio? Add all your monthly debt payments and divide by
your gross monthly income. If the number is above 36%, that’s a sign you might be carrying
more debt than lenders are comfortable with.

Are you struggling to make the minimum payments on your credit cards or loans? Are you
missing payments or paying late? If so, this could lead to even worse problems down the road
as these practices can also affect your credit score.

Are you using credit cards to pay for everyday things like groceries or utilities because your
paycheck doesn’t stretch far enough? That’s a sign you’re overextended, and it should be a
warning that you should pay attention to.

Are your credit cards maxed-out? If your balances keep climbing and you’re not able to pay
them down, you could be stuck in a cycle that’s hard to break and it usually means that it’s time
to take a closer look at your finances. You should avoid borrowing from one source to pay for
another.

Do you have little or no savings? This leaves you without a cushion for emergencies or future
plans. And don’t ignore how debt makes you feel. Stress, anxiety, or feeling overwhelmed are
all signs that your debt might be affecting your well-being.

A safe way to tackle your debt is to contact a nonprofit credit counseling agency. Companies
like Cambridge Credit Counseling can customize a debt repayment plan that will have you debt
free in a matter of just a few years, without filing for bankruptcy or having to use risky debt
settlement services.

If you recognized any of the warning signs above, you can call a certified debt specialist at
Cambridge for a FREE debt evaluation and to learn your options at 888-254-4925 or click here
to schedule your appointment online.