10 Warning Signs You Have Too Much Debt
Warning signs of too much debt include using one credit account to pay another, making only minimum payments, having no savings, receiving collection calls, and falling behind on essentials. If several of these signs apply to you, you may be over-indebted and a financial assessment with a registered debt counsellor can help determine your options.
Key Points
- Using credit to pay credit is a key warning sign.
- Only making minimum payments signals strain.
- No savings and collection calls are red flags.
- Several signs together suggest over-indebtedness.
The warning signs
1. You use one credit account to pay another. 2. You only make minimum payments on cards. 3. Your balances stay high despite regular payments. 4. You have no savings or emergency buffer. 5. You receive calls or letters from creditors or collectors.
6. You fall behind on essentials like rent or electricity. 7. You juggle which accounts to pay each month. 8. You have taken out new loans to manage existing debt. 9. Your debt repayments consume most of your salary. 10. You feel constantly stressed about money.
What the signs mean
Any one sign alone may not indicate a crisis, but when several appear together, they point to over-indebtedness — a situation where your income cannot comfortably cover both essentials and debt.
Recognising the signs early gives you time to act before legal proceedings begin.
What to do
Complete a budget to see your income, essentials and debt clearly. If the signs point to over-indebtedness, contact a registered debt counsellor for a financial assessment. If you qualify, debt review can restructure your repayments to an affordable level.
Acting early preserves more options and reduces stress.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
View profileRelated Articles
How Do You Know If You Are Over-Indebted?
You may be over-indebted if your total monthly debt repayments plus essential living expenses exceed your net income, if you use one credit account to pay another, or if you regularly miss or juggle payments. Over-indebtedness means you cannot satisfy all your debt obligations in a timely manner. A financial assessment with a registered debt counsellor can confirm your position.
6 min readBudgeting & Financial RecoveryHow to Calculate Your Debt-to-Income Ratio
Your debt-to-income ratio is your total monthly debt repayments divided by your net monthly income, expressed as a percentage. For example, if you pay R6,000 toward debt on a net income of R20,000, your ratio is 30%. A lower ratio is healthier; a ratio above roughly 35–40% may signal over-indebtedness and warrants a financial assessment.
6 min readPersonal Loans & Credit CardsHow Do I Know If I Have Too Much Unsecured Debt?
You may have too much unsecured debt if your combined monthly repayments on personal loans, credit cards, store cards and overdrafts leave little for essentials, if you use one credit account to pay another, or if you have no buffer for emergencies. A financial assessment can confirm whether you are over-indebted and whether debt review may help.
6 min readBudgeting & Financial RecoveryHow to Create a Monthly Budget When You're in Debt
To create a monthly budget when you are in debt, list your net income, then your essential living expenses, then your debt repayments. Subtract expenses and debt from income to see what is left. If there is nothing left or the figure is negative, you may be over-indebted and a financial assessment can help. A budget gives you control and shows where to cut back.
7 min read