Owing money is OK as long as you plan ahead. If the amount you owe starts to become too much, you could run into problems. You might fall behind on bills, and you might even be sued in court.
If you are dealing with debt, the first thing you should do is write down a budget of what you expect to spend on all of your expenses each month. Look back at bank statements or other records to see what you have spent on different areas like rent, food, transportation, and clothes. If you don't have this information, you should start keeping track so that you can start planning.
Once you have your monthly budget, you can compare it to the amount of income you have. If your expenses are more than your income, it will be very hard to pay off any debts you have. You should avoid going into debt until you can get your expenses below your income.
Learn more about budgeting and get help with your debt from the Consumer Protection Bureau Financial Well-Being Checker, and read more at the links below.
Updated: March 2018