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Do I have too much credit card debt?

Credit card debt can quickly grow from being a general nuisance into a full-blown financial catastrophe very quickly. However, when you're trying to evaluate how much credit card debt is "too much," you might not have a point of basis for comparison. That's exactly what this article intends to provide.

A little bit of debt is certainly okay -- and according to some it might even be healthy -- but too much debt can be damaging to your health, wealth and happiness. One simple metric for evaluating whether you're in the throes of a debt problem is to analyze your debt-to-income ratio. If you hold debts in excess of 50 percent of the income you generate in a year, then you're probably feeling extremely overwhelmed. Even before you hit a 50 percent debt to income ratio, you may be feeling stressed and worried even if you can still manage to keep up with your payments.

Regardless of how your debt situation compares against the above metric, if you're feeling anxiety or stress regarding the money you owe to creditors, it's time to assess your situation and get control of your debt as quickly as possible.

For people with debt to income ratios below 15 percent, you're probably in a good situation and you should be able to get control of your debt problems quickly and effectively with determined and consistent effort. If it's between 15 and 49 percent, it's time to get serious and to consider reaching out for some debt counseling. If your debt levels are 50 percent or more, you might want to chat with a skilled bankruptcy attorney.

Every debt situation is different and just because you have a lot of debt doesn't necessarily mean that bankruptcy is right for you. Make sure you're certain you can benefit from the bankruptcy process before you move forward with your debt resolution plans.

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