Debt Load: The "28/36" Rule

This rule is used by mortgage lenders:
-Your monthly household debt service should not exceed 28% of your gross monthly income
-Your total debt service, including your house payments plus all other payments should not exceed 36% of your gross monthly income

In Determining your Debt Load Limits Consider the Following:
-The stability of your income
-Your other regular expenses
-Your need for cash from month to month
-The changes in your cash needs as you age
-Your personal needs, wants, and goals
-Any extraordinary expenses that may come up
-Remember that debt Spends your future income
-Make regular savings a habit

Warning Signs:
It's hard to admit to having too much debt. Obviously or the world wouldn't be in the current economic state it is. Here are some warning signs that you are carrying too much debt:
-Next months bills come in before last month's have been paid off
-You get frustrated when you write checks because you have more bills than you thought you did
-You know what past-due notices look like
-You get overdue balances on credit card statements
-You avoid opening letters ( Confession of a shopaholic ring any bells)
-You hardly ever keep a running balance in your checkbook

Some Tools:
-Cost of Credit Calculator
-Are They in Trouble Worksheet
-Do you Know your Net Worth
-Cost of Credit Worksheet
-How to Handle Creditors