Falling in debt

You can know that you are falling into debt in the following circumstances:
Your debt expenses are more than your income
You can't afford to pay all your bills
You have no savings

A high debt to income ratio is also an indicator that you're falling into debt.

How do we measure them?

Debt to income ratio or DTI is the percentage of a person's monthly gross income that goes toward paying debts. If most of your income goes towards paying off your debts and you can hardly save anything, then it means your debt to income ratio is high and you're falling into debt.

If you have to ask...you probably are.

I agree with Bob. If you have to ask you probably are. some other indicators are your debt to income ratio like someone said above, can you just afford the minimum payments on credit cards as credit card companies love that, are you starting to fall behind on payments, are you deciding which card to pay late this month. these are all signs that you are too far in debt. Get out of debt asap.

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I think if you are starting to owe more than what you make, per month,...then that get a bit scary. If you are starting to 'barrow from Peter to pay Paul' then it may be an indication that things are 'slipping' from you.

are you?
you are fallin in a debt when you see you spend too much money than what you make. the bad is when you spend your money for something shouldn't be bought. and then all the things go around you will make you into a debt, or even more. be a wise shopper will help a lot.

Yes, being a wise shopper truly helps. It really gets worse when we get tempted to buy something that looks attractive but costs more than what we have in our budget. Once we develop such a habit, we go deeper and deeper under our debt burden.

To avoid spending too much on shopping, you should make a list of items which you want to purchase and don't buy anything that is not in your list. If your hobby is window shopping, change your hobby as often you get tempted to buy an item when you go for window shopping.

Hi,
Your debt-to-income (DTI) ratio is an indicator of your debt situation. This is a ratio of the percentage of your gross income that goes towards paying your debts every month. The higher your DTI is, the more you are in debt.
Even without calculating your DTI you can say you are in debt if you are unable to save anything and have plenty of bills to pay, which is becoming increasingly difficult for you.
I would suggest you immediately start following a budget if you think that you are in debt.
Thanks :)

Everyone gave great answers, but the most simple clarifications came from Isabella and Jacqueline. Thank you. This really does sum it up for me as far as the debt to income ratio and/or not having savings. I would say living paycheck to paycheck is a sign your debts are rising too far.

Please don't revive old threads unless you have something substantive to add.

The debt-to-income (DTI) ratio is the truest indicator of one's debt situation. The higher the ratio, the deeper you're in debts. It denotes the percentage of a person's monthly gross income that goes towards the repayment of debts. Calculate your DTI ratio regularly to keep a good track of your financial condition. It is also a way of preparing beforehand for any adversity that might present itself without a warning. For example, you can start saving money if your DTI ratio doesn't look too good.

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