For the majority of American households, long gone are the days of scrimping and saving until you can afford to purchase something you need. And although people often extend their credit beyond their means, there are a variety of financing options available to help you get by.

In many cases, you can establish an affordable monthly repayment plan and borrow money to cover immediate expenses. Although whether you took out college loans, mortgaged your home or plan to spend the next five years paying off your vehicle, you likely have quite a bit of debt.

When you are healthy, and things are going well at your job, you probably don’t think twice about making your payments. However, one unexpected change in your life could quickly turn your financial world upside down.

You would be wise to consider some indications that you are in over your head before you borrow more money – regardless of your current debt-to-income ratio.

Three indications that you have too much debt

Like most people, you probably accumulated debt for a variety of reasons – many of them well-intentioned. But maybe you anticipated employment incorrectly, had a significant home repair for which you were unprepared or a health condition temporarily limited your earning potential.

There are many reasons why you might need to explore your options for regaining financial control. Some indications that you need a fresh start include:

  • Your bills don’t leave any extra money for you to save for the future
  • The highest monthly payment you can afford to make on each account is the minimum amount due
  • You have to juggle debt balances between different creditors to reduce your interest rate

If you feel like your financial situation is going from bad to worse, you can learn about the options available to you.

Depending on your situation, refinancing might be enough to get you back on track. Though many times, filing bankruptcy will provide the financial relief necessary to create a wonderful future.