One way to determine how much debt you should have is to see what the Consumer Financial Protection Bureau recommends? They suggest you keep your debt-to-income ratio below 43%. No more than 43 percent of your gross monthly income is needed to pay your fixed debts, including your mortgage and other car loans. The 43% suggestion is higher than what most lenders ask for. They prefer to see a debt-to-income ratio smaller than 36%, with no more than 28% of that debt going towards servicing your mortgage.

A loss of income or increased living costs or expenses can cause a household debt crisis. The biggest reason for unexpected debt is medical expenses, which generate half of all bankruptcies in the United States.

Sometimes married couples leave paying the bills to just one team member even though both have a regular impact on the spending. It is important to remember that when married, it isn’t your money. It is our money. If an agreement is never reached on how much debt to carry and the importance of paying promptly, problems follow.

Be aware of all the bills and the total owed. If you are locked into a higher cost of living than you can afford, you have to increase your income or lower expenses. You may have to sell the house, move into a smaller one, or drive a less expensive car. A second job can get you out of debt faster, but if it takes two appointments to maintain your lifestyle, it reduces your costs unless you like working two jobs. Once you understand your debt-to-income ratio and make the apparent change, you will likely need some suggestions to reduce your debt, and here are some additional ways.

7 Ways to Reduce Debt
Make a list of all your debts and income
Lower your interest rates
Pay more than you have to pay to reduce debt
Earn more money (Take a 2nd job)
Spend less money
Create a budget for short & long term
Lower your costs: Less expensive house and car.