There should be more to life than an ongoing struggle to make ends meet. Still, if you have significant debt, you may never stop worrying about repaying it. Further, even if you plan to limit the amount you borrow, you may have emergency expenses that take a tremendous toll on your monthly budget. Either way, you must know how much debt you can afford.
Debt is a way of life for most Americans. That is, virtually everyone has a student loan, mortgage, credit card balance, medical bills or another type of outstanding debt. In fact, according to reporting from CNBC, the average American owes roughly $38,000 to creditors. Unfortunately, debt is not always easy to manage. While limiting the amount you borrow may be an effective strategy, some debt is unavoidable. So, how much debt is too much?