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Get Out of Debt

5 Signs You’re Over Your Head in Debt

Up all night worrying about debt? If you’re concerned you might be in over your head when it comes to debt, you might want to check out the list below. Feeling overwhelmed by debt can be debilitating and lead to depression, anxiety, and sleep disorders which in turn have their own side effects. Speaking to financial experts can help you regain some control in what can often feel like an uncontrollable situation. Try checking out online loan sites from lending organizations like Dream Loans for more information about these feelings and the options that may still exist despite your financial situation.

Saving Less Than 5%

It’s recommended that you tithe at least 5% of your income into some kind of savings or investment account. If you don’t even have this much going towards your savings, it’s a sign you may be in over your head. If this sounds like you, you may need some help getting your finances under control. Reach out now, and get back on track before things get worse.

Your Credit Rating Scores Are Low

Your credit rating is like you report card for how well you handle money. If your score is low, it’s a sign that you haven’t been managing your personal finances well and you may well be in over your head. Once again, don’t drown – reach out; ask for help. You can work your way out from under debt, and get your personal finances on track.

Credit Cards Maxed Out

This one just might be obvious, but that doesn’t mean it isn’t true. If your cards are full to the max then it’s a pretty good indicator that you’re in over your head with debt. Maxing your cards out once for an emergency situation isn’t too terrible (although it’s never advisable), but if this is a habitual thing for you, you may have a problem.

Mortgage Stress

If 28% or more of your income goes to service your home loan, you are probably in mortgage stress – which means that yes, you are in over your head in debt. While the ‘28%’ may sound like a random number, it is based on several studies that indicate this is the percentage amount of income the average person can spend on their mortgage and still maintain a reasonable standard of living. As property prices rise and rise, more and more people are finding themselves in over their head in debt as they struggle to pay home loans.

So Many Bills You Don’t Even Know What You’re Paying For

These days it’s so easy to sign up to this Pay-TV offer, or that gym membership, that you’re likely to have bits and pieces of money flowing out of your account – and you’re not even sure what they’re all going to pay for. If you’ve completely lost track of what you’re paying for, when it gets paid, and how much you’re paying, there’s a good chance you are in over your head.

Debt is too easy to access these days – so you have to be extra vigilant to ensure you do not get in over your head. Debt has a place as part of any sound financial strategy, but like all things money, it needs to be kept in check.

Have you, or has anyone you know, ever been in over their head in debt?

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Erin Thompson

Erin Thompson spent years managing her own blog about budgeting and debt. Because of that, she has great insights not only about managing spending and borrowing but also about running websites profitably. When she's not writing articles for us, she's traveling and looking for new types of wines to try.
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The content on is for informational and educational purposes only. It is not financial advice and we are not certified financial advisors. strives to keep its information accurate and up to date, but it may differ from actual numbers. We may have financial relationships with companies listed on our site. We may receive compensation for the placement of sponsored products or services. We work hard to write authentic and accurate articles.