How Much Debt is too Much?

Black hole...on earth

Image by ƒernando via Flickr

During the course of our life most of us will incur in some sort of debt. Some of it big some of it small. More generally we do it so we can buy a car or a house, sometimes we do it for other reasons, like a phone or a TV.

Personally I have no debts. But then again I’m young and my parents have always supported me, giving me the money I needed to live and study. But we aren’t all that lucky. Some of us have incurred in debt to afford going to school or getting a car to be capable of moving around from school, to work and home.

I believe that debt can be understandable in many cases. When you want to buy a house to build a family in, or when you need a car to move around. These can be considered necessities at certain points in our lives, but there are other things that aren’t considered necessities that can also be justifiable. Like paying for your education, it’s an investment after all.

But at the end of the day debt is only a problem if it hinders you.

When the amount of debt you have to pay every month is bigger than the money you make things are truly bleak, and that is surely to much debt. But I feel debt becomes to much a little bit before that point. I believe you have too much debt when you aren’t capable of saving money, when your literally living from pay check to pay check.

At this point, when debt is too much, there are only two things you can do: cut back on your expenses or find ways to make more money. Things easier said than done.

Debt has become a serious problem in our society. But I do believe it isn’t always the result of irresponsibility or recklessness, sometimes you take in debt just to survive or move forward. The irony is that the debt that may push you forward at one time may keep you back in the future.

What ever your situation, don’t loose hope and be careful when ever you consider spending more money that what you own.

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