What are signs you are taking on too much debt?

You're likely taking on too much debt when your monthly debt payments consume more than 35-40% of your gross income, leaving little room for savings or emergencies. Struggling to make minimum payments, regularly using credit cards for basic necessities like groceries or utilities, and having no emergency fund are strong warning signs. If you're borrowing from one source to pay another, losing sleep over finances, or avoiding looking at your bank statements, those are serious red flags. Other indicators include maxed-out credit cards, a declining credit score, and being denied for new credit. If unexpected expenses like a car repair would immediately put you in financial crisis, your debt load is likely already too high.