Signs to watch out for when managing debt

When handled wisely, debt is a useful tool. A personal loan can help you seize an opportunity or overcome a hardship. A mortgage can make it possible to buy a home. A student loan can help you get through college. Credit cards allow you to pay with convenience and earn perks. Debt can help you reach your financial goals. It can also get out of control. If you’re unsure how much debt you can manage, you’re not alone. This article walks through a few common signs that it may be time to do something about your debt.

Key takeaways

• If you’re only making minimum payments on your credit card, paying bills late, or missing payments, it’s time to check in on your debt.
• Using credit to cover everyday expenses may mean your income isn’t keeping up.
• Feeling anxious about debt—or avoiding conversations about it—can be a signal to take a closer look.
• A debt-to-income ratio over 36% can make it harder to stay on track financially.
• You don’t have to figure it out alone. Oportun partners with UnidosUS to connect our community to free financial coaching.

Financial signals about debt

If you’re wondering whether it’s time to take a closer look at your debt, your day-to-day habits can offer helpful clues. Here are five signs to be aware of—and what they might mean.

1. You’re only making minimum payments

If you’re only paying the minimum on your credit cards, interest can add up quickly. This makes it harder to pay down your balance and can lead to a cycle that’s tough to break.

2. You pay bills late or miss payments

Missed or late payments can lead to added fees and may affect your credit score, making it more difficult to borrow affordably in the future.

3. You use one credit card to pay another

Shuffling debt between cards may offer short-term relief, but it can lead to more fees and more debt—not less.

4. You borrow to cover everyday expenses

If you’re relying on credit to pay for essentials like rent, groceries, or utilities, it may be a sign that your expenses are outpacing your income.

5. You don’t have emergency savings

Without a safety net, unexpected costs like a car repair or medical bill can be harder to manage. Even small emergencies can feel overwhelming without savings to fall back on.

Emotional signs about debt

How you feel about your finances can be just as important as the numbers. If you relate to any of these, it may be time to take a closer look.

You feel overwhelmed by money

Constant worry about debt or uncertainty about your financial future can affect your health, relationships, and peace of mind. You deserve support—and a clear plan forward.

You avoid looking at bills or bank statements

If managing money feels so stressful that you avoid it altogether, that’s a signal worth listening to. You’re not alone, and help is available.

You keep your debt or spending a secret

Feeling like you need to hide your finances from loved ones can be a sign that it’s time to reach out and explore your options.

How does high debt affect credit health?

A debt-to-income ratio (DTI) is one way to measure debt levels and can be used by financial institutions for certain financial products, like in an application for a mortgage. The DTI ratio compares your total monthly debt payments to your monthly income before taxes. A DTI over 36% may make it harder to stay financially stable. Over 43% could be a sign that it’s time to ask for support.

Carrying a high level of debt can affect your credit health. Here are a few things that can happen:

Your credit score drops

Missing or making late payments can lower your credit score, making it harder to access affordable borrowing in the future.

You’re declined for new credit

When lenders turn down credit applications, it may be because your current debt levels or payment history raise concerns.

You’re contacted by debt collectors

If a bill is significantly overdue, you may start to receive calls or letters requesting payment.

A financial coach can help you with a debt management plan

Recognizing a pattern in your money habits is a powerful first step. If you’ve decided to take a closer look at how to manage your debt, a financial coach could help.

Get free financial coaching from UnidosUS

Our friends at UnidosUS will help you review your debt and create a plan that works for you. Oportun makes this service free for our community—just one way we’re here to support your financial health.

Small changes can lead to big progress. And you don’t have to do it alone. Resources and support are here when you’re ready.

Oportun: Affordable lending options designed with you in mind

Now that you understand how to tell if your debt is under control, you can learn about how Oportun may be able to help you if you’re looking for affordable credit options.

Visit our homepage to learn about:

• Personal loans
• Secured personal loans
• Savings
• And more!

Sources

Experian. What is a debt cycle?

Cambridge Credit. How can I tell if I have too much debt?

CBS News. Ten signs your credit card debt is out of control

CNBC.com. Six signs you have too much debt—and how to pay it off

Money Wellness. Seven sure signs that your debt is becoming unmanageable