Mortgages. Lines of credit. Car loans. Credit cards. Student loans.

When it comes to debt, there is no shortage of ways to accrue it. Almost everyone will take on debt at some point in their lives — it’s what allows us to make major purchases like a home or a car, particularly when we’re just starting out.

But how much is too much? And how do you know where to draw the line?

Strictly speaking, the general rule of thumb is that the total of all your monthly debt payments, combined with the cost of utilities and taxes on your home, shouldn’t exceed 40 per cent of your monthly income before taxes. That’s what is commonly referred to as your Total Debt Servicing Ratio (TDSR).

However, even your TDSR only tells part of the story. The real warning signs can be found in your day-to-day behaviour.

Here are some telltale signs that you need to think about reducing your debt load:

·        You struggle to pay your bills on time

·        You often resort to living off your line of credit

·        You routinely spend more than you earn each month

·        You aren’t able to pay your credit card bills in full

·        You’re losing sleep over money matters

If you recognize some of these warning signs, it may be time to take a closer look at your finances. Perhaps you need to rework your household budget or look at consolidating some debt.