4 ways to know you would soon be in debt

[Augusta]

When it comes to staying in debt, it doesn't just happened the signs must have been there but you didn't noticed or you noticed and did nothing about it.

it is always pertinent to look out for signs of things that would be detrimental to your well-being and nip it in the bud before it escalate. so what are they signs that you


1. You are denied loans and credits by lenders. You might be owing others already and the new lenders are aware which means you are about to be termed a debtor.

2. Your credit rating is low. This is another sign that you would be getting into huge debt. Your credit score or rating is low

3. You have been owing bills. The accumulation of bills means you have not being making a regular payment. So you are accumulating more money to be paid. if you do not rectified this on time. You might just be having a huge debt to offset in future.

4. You are borrowing more than making payments. If you keep on borrowing and no means of refunding, then it is a sign you would soon be in big debt.

What do you think?

 

[Mika]

Some people say, your debt repayment should not be more than 10 percent of your monthly income or 20 percent of your annual income, whereas you should keep your debt repayment to less than 40 percent of your total income. How much should be your debt to income ratio depends on a number of factors. If you already have savings or some investment portfolio, I think up to 40 percent of your income for debt repayment is fine. However, if you do not have any savings or any investment, even a 10 percent requirement for debt repayment can be alarming.