How much debt is too much? And when should you start worrying?

A home loan, a car EMI, a few credit card payments.

Individually, they might seem manageable. But how do you know when your overall debt is becoming too much?

There's no single debt amount that's excessive for everyone. What matters is how comfortably you can manage repayments alongside your everyday expenses and savings.

Start with your monthly repayments

Look at how much of your take-home income goes towards EMIs and other mandatory debt payments.

Then ask yourself:

• Can I comfortably cover my essential expenses?
• Do I have enough money for emergencies?
• Am I still able to save or invest regularly?
• Would I struggle with repayments if my income dropped?

If debt repayments consistently prevent you from meeting essential expenses or building savings, it's worth reviewing your borrowing.

Not all debt is the same

A home loan with manageable repayments is different from carrying expensive credit card debt month after month.

Interest rates, repayment terms and the purpose of borrowing all matter.

It's also possible to have a positive net worth but struggle with monthly repayments.

For example, someone might own a valuable property but have very little money left after paying their EMIs.

The takeaway: Debt becomes concerning when it limits your ability to cover expenses, handle emergencies and make financial progress. Look at both your total liabilities and your monthly cash flow.