If you are concerned about debt, now's the time to take action:
Examine your current finances and review your spending patterns.
Set financial priorities and differentiate between what you need and what you want.
Cut spending wherever possible.
Talk to the financial institution that issued your card and other creditors to let them know if you won't be able to meet a required payment date. Inquire about other payment options, such as extending your repayment period and work toward a mutually agreeable repayment plan.
Set up a monthly budget to manage your cash flow going forward.
Wondering if you are incurring too much debt?
The easiest way to check this is to confirm that your outstanding credit card or loan balances should not exceed 20% of your monthly income minus your rent or mortgage. This easy-to-use calculator can help tell you if you've exceeded the target 20% of net income borrowing limit. Simply fill in the numbers. The calculations are done automatically.
