Keep track of your income and expenses.
Your debt load is what you pay to creditors each month, not counting your mortgage. A safe debt load is one that you can pay off comfortably. In general, if your debt load is 20 percent or more of your take-home pay minus your mortgage or rent payment, you might no longer be carrying a safe debt load.
One Year
Write down your income and your expected rent or mortgage for a year. Then, write debts. Determine if you will be able to pay off your debts within the year. If you can, you have a safe debt load.
Signs
If you are only able to pay the minimum on your credit cards, this can be a sign that you do not have a safe debt load. If you have to take on a second job in order to make ends meet, you might be carrying too much debt. Juggling payments, stalling creditors and not saving are also signs.
Use Credit
Before you make a purchase, decide how you will pay for it. A good rule of thumb is not to buy something on credit if you will use it up before you are done paying for it.
Comparison Shop
Do not pay more for items than you have to. Comparison shop to make sure you are getting the best price.
Useful Information
Keep in mind that credit usually costs more than paying cash. Even if you buy from a store that charges no interest for a year, you might end up paying more for the item because the store raised the price to make up for the no-interest offer. And if you can't pay off the item within that year, you will have to pay all the interest that you were trying to avoid.
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