When You Know It’s Time to Hire a Debt Settlement Attorney 1

When You Know It’s Time to Hire a Debt Settlement Attorney

How Much Debt Is Too Much?

Don’t underestimate the power of your debt! It’s been known to increase stress levels, destroy relationships, and contribute to anxiety. While having thousands of dollars worth of debt may seem normal, it’s terrible for your finances. Please consider how much debt is too much and when it’s time to hire a debt settlement attorney.

Give It to Me Straight – How Much Debt Is Too Much?

It’s not a secret that everyone wants their debt to be as low as possible and that having a little debt is perfectly fine for your financial health. However, when you’re struggling to make monthly payments, you’ve hit your debt ceiling. Most financial experts say you should keep your debt-to-income ratio below 43% to remain financially flexible.

Debt Settlement Attorney

When It’s Time to Hire Help: You can’t make your monthly payments and don’t have enough funds for emergencies or to save for your future goals.

What Is Debt-to-Income Ratio?

Your debt-to-income ratio is how you and financial institutions can determine how much your monthly debt affects your income. Here are the expenditures included when you’re calculating your debt-income-ratio:

  • Alimony
  • Child support
  • Loan payments – including auto loans, personal loans, and student loans
  • Monthly credit card payments
  • Monthly rent or mortgage

However, not all of your monthly expenses are included in the calculations. Check out what’s not included in your debt-to-income ratio:

  • Cable
  • Cell Phone
  • Groceries
  • Insurance
  • Monthly subscriptions
  • Utilities

How to Calculate Your Debt-to-Income Ratio: Divide your monthly debt by dividing it by your income. For instance, if you make $3,000 monthly and have $1,000 in monthly debt, your debt-to-income ratio is 33%.

Are There Good Debts and Bad Debts?

There are outstanding and bad debts, and which one you have affects your financial health more. Good debt increases your net worth over time and has a lasting value. For instance, purchasing a house is considered good debt because quality homes are usually appreciated over time.

Bad debts don’t provide value and usually include things you have to finance. A great example of bad debt is financing new furniture. While it makes your home extra comfortable, it doesn’t have lasting value and doesn’t increase your net worth.

What to Do With Bad Debt: Consider reviewing your finances and creating a realistic budget. If you can’t devise a plan to pay your bills and still enjoy life, consider debt settlement.

So, What Are the Signs of Having Too Much Debt?

When sitting too close to your finances, it’s hard to see when debt becomes problematic. If you see any of these red flags, you might have too much debt:

How Does Get Help With Overwhelming Debt?

When you have too much debt, the first thing to do is take a deep breath. Even though debt can feel overwhelming, most Americans face the same problem. So, remember, you’re not alone. There’s even better news! You have several options to take down debt for good:

Debt Consolidation Loan

This is where you discuss your financial goals with an expert and take out a loan to cover the cost of all your debts. This eliminates multiple monthly payments and could lower your prices overall. Remember that you need to find a financial institution you trust when you consider a debt consolidation loan.

Credit Counseling

Sometimes, it isn’t easy to create a realistic budget. That’s where professional credit counseling comes in. You can hire a professional credit counseling service or seek help from nonprofits or your local church.

Debt Settlement Program

Depending on your debt’s total amount and type, you might qualify for a debt settlement program. This is a good option if you’re considering bankruptcy. Finding an experienced attorney can help reduce or eliminate your debt.

How to Choose the Right Method: The only way to know which method of paying off your debt honestly is suitable for you is to meticulously review your finances and seek the advice of a professional. In general, choose the method that pays off your debt quickly and doesn’t interrupt your well-being.

So, What’s the Bottom Line?

If your debt is out of control and affecting your daily life, it’s time to get help. Don’t let life pass you by because you’re too worried about finances; it’s too short to live with debilitating debt. It’s time to take action and manage your financial future!


I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.