8 Signs You May Have a Debt Problem

The cost of living has risen sharply in recent years, and so have financial stress levels. Recent data shows that 3 of 4 Americans today are anxious about their financial situations and among those concerned — debt is a big factor.

• 68% think they don’t have enough money to retire
• 58% feel that finances control their lives
• 56% believe they can’t keep up with the cost of living
• 45% say they have trouble managing debt levels every week

With this data in hand, financial experts at Beyond Finance who regularly speak with consumers in debt, unpack 8 common signs that debt has become a problem.

Insights from Beyond Finance

Based on their work, Beyond Finance consistently observes that debt becomes unmanageable for the people they help when:

• They’re only making minimum payments because they can’t afford more
• Credit is being used to cover everyday necessities
• New debt is taken on to deal with existing balances
• Debt stress is so high, they ignore or avoid the problem
• Debt begins affecting mental health or everyday needs

These observations often signal that debt is no longer manageable without support and it may be time to take action and explore your options.

The 8 Signs You May Have a Debt Problem

If you have debt and relate to 3 or more of the following, you might have a problem.

1. Overdrafting Feels Normal

When checking accounts regularly dip below zero before payday, it’s a sign expenses are exceeding income. That’s a moment to look closer at how much of your cash flow is being taken up by debt—and whether overdrafts are forcing you to rely on new credit to cover the gap.

2. You’re Only Making Minimum Payments

Minimum payments keep accounts current, but they reduce debt very slowly. Because most of the payment goes toward interest, balances often barely move — and when that’s all you can afford, it’s a common sign there’s little room in your budget to make real progress.

3. You Borrow From Family or Friends or Friends

Turning to friends or family for financial help (especially more than once) is a sign that debt has eliminated your financial breathing room. When existing debt leaves you without other options, relying on loved ones can strain relationships and add emotional stress to an already difficult situation.

4. You Avoid Looking at Your Finances

Avoidance is rarely neutral. If you know your finances are in bad shape but avoid looking at how bad, it’s often a sign that debt has become emotionally overwhelming — not just financially stressful.

5. You Don’t Have a Clear Plan

Paying attention to debt isn’t the same as having a plan. Without a clear repayment strategy and timeline, debt can feel endless—and progress can be just as limited as if you weren’t looking at it at all.

6. Spending Is Impulsive or Emotional

Emotional spending may feel relieving, but when it’s supported by credit, it often turns a coping mechanism into a growing debt problem — one that can increase stress and reinforce the cycle.

7. You Keep Moving Debt Around

Balance transfers can help temporarily, but if debt keeps shifting instead of shrinking, the underlying issue isn’t being resolved. 

8. You’re Using Credit for Basic Necessities

Using credit for basic necessities is a sign that income isn’t covering everyday needs. When debt payments crowd out essential expenses, relying on more debt to get by can cause the problem to keep growing.

When Debt Becomes a Problem

Many people live with some level of debt stress and assume that’s normal. Bills are hard to pay on time, balances linger or grow, but nothing feels urgent enough to make a real change.

The threshold is crossed when debt limits your choices, drives your decisions, or affects your well-being. If you’re relying on credit to cover basics, avoiding your finances to manage anxiety, or unable to see a realistic path forward, debt is no longer just part of life — it’s something that needs to be addressed.

According to Beyond Finance, if you recognize three or more of the signs outlined in this article, that’s often a strong indication that it’s time to explore your options. For many people, that next step includes talking with financial professionals, reviewing repayment strategies, or learning whether debt consolidation or other relief approaches may be appropriate for their situation.

These signs often appear well before a financial crisis. Acting earlier can preserve more options, reduce stress, and make solutions easier to pursue.