According to Bruce McClary, senior vice president at the National Foundation for Credit Counseling (NFCC), there is no universal dollar amount that defines debt as a problem ; what matters is understanding what you owe, keeping up with payments and maintaining enough room in your budget. Warning signs appear both in your numbers, such as making only minimum payments or having to choose which bills to pay, and in your habits, including spending tied to emotional issues or exhausting all borrowing options. For most people, the tipping point comes after a specific jarring moment, usually a call from a debt collector. The NFCC advises reaching out to a counselor before making any major decisions, with the initial session being free and including a full review of your budget and debt. Acting early, the moment your budget feels vulnerable to one unexpected expense, provides more options to address the situation.
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