What are the warning signs that your credit-card debt is something to worry about. Your debt-to-income ratio, not including mortgage, should not be over 20%. Therefore, you should not commit over 1/5 of your net monthly income to paying off credit cards and other nonmortgage debt. Here are some signs:
· Using credit cards to pay for things when you know you cannot afford them.
· Worrying that loved ones will discover how deep in debt you really are.
· Only being able to make the minimum payments on your debt.
· Maxing out several or all of your credit cards.
· Charging items with the intention of paying them off at the end of the month, but then not paying off that debt.
· Using credit cards for everyday purchases like groceries because you have to.