What are the signs you are taking on too much debt?

You're likely taking on too much debt when a significant portion of your income goes toward monthly payments. A common warning sign is when your debt-to-income ratio exceeds 36%, meaning more than a third of your gross income covers debt obligations. Other red flags include relying on credit cards to cover basic living expenses like groceries or utilities, only making minimum payments each month, borrowing from one source to pay another, and having no emergency savings because all spare money goes to debt. Additional signs include feeling constant financial stress, receiving collection calls, being denied new credit, and watching your balances grow despite making regular payments. If you can't see a realistic path to becoming debt-free, that's a strong indicator you've overextended yourself.