What is considered a lot of debt? Here's what borrowers should know now.

Americans are carrying record levels of debt as we approach 2026. Household debt has surpassed $18.5 trillion, with credit card balances alone exceeding $1.23 trillion nationwide, according the latest Federal Reserve data. Meanwhile, credit card interest rates remain elevated at over 22% on average, making it increasingly expensive to carry a balance from month to month. And, as more borrowers struggle with persistent high costs and economic uncertainty, one question keeps surfacing: At what point does debt become unmanageable?

The answer isn't as straightforward as you might expect. What feels overwhelming to one household might be perfectly manageable for another, depending on income, expenses and financial obligations. Still, there are concrete metrics that experts use to assess whether someone's debt load has crossed from reasonable to problematic. Understanding these benchmarks can help you determine whether you're still in control of your finances or if it's time to explore debt relief strategies.

The distinction matters more than usual right now. Despite multiple Federal Reserve rate cuts in 2025, a lot of borrowers are still trapped in a serious debt cycle, one that could threaten their long-term financial health. So what exactly is considered a lot of debt, and are there strategies you can use to get rid of it? Below, we'll detail the answers to both timely questions.

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What is considered a lot of debt?

There's no single number that defines "a lot of debt" for every borrower. Instead, lenders will typically rely on your debt-to-income (DTI) ratio to determine whether your debt level is healthy or concerning. This metric compares your total monthly debt payments to your gross monthly income. Most financial advisors consider a DTI of 36% or lower to be manageable, with no more than 28% of that going toward housing costs.

Once your DTI ratio climbs above 43%, lenders view you as a higher-risk borrower, and you may struggle to qualify for additional credit or favorable interest rates. At 50% or higher, you're in what financial professionals call the "danger zone," meaning that more than half your income is committed to debt payments before you've even covered basic living expenses like food, utilities and transportation.

But your DTI ratio doesn't tell the whole story. The type of debt also matters significantly. Carrying $300,000 in mortgage debt on a home that's appreciating in value is fundamentally different from carrying $30,000 in high-rate credit card debt. Revolving debt, like credit card debt, is particularly concerning because of how the interest compounds on both the balance and the prior interest assessed on the account.

That said, there are other warning signs that your debt has become problematic, which include regularly paying bills late, using credit cards for everyday necessities like groceries or gas, taking cash advances or feeling constant anxiety about money. So, if you're juggling payments or borrowing from one account to pay another, your debt load has likely exceeded what's sustainable, no matter what your DTI ratio is.

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When should borrowers consider pursuing debt relief?

If your debt falls into the "too high" category, whether that's according to your DTI ratio or based on your ability to manage what you owe, the next question is what to do about it. That's where debt relief programs can help, especially for borrowers whose balances are growing faster than they can pay them down. Here are some situations where pursuing your debt relief options may make sense:

Your interest rates are so high that repayment feels impossible

Many borrowers dealing with high APRs on their credit cards find themselves trapped in a cycle where the minimum payments they make barely touch the principal. In these situations, pursuing debt consolidation or credit counseling may help lower the interest charges or monthly payments — or, ideally, both.

Your balances exceed what you can repay within five years

A long repayment horizon may signal that traditional budgeting changes alone won't solve the issue. That's where debt management, which is a type of debt relief where a credit counselor helps you lower the interest rates and fees while creating a tailored repayment plan, or an option like debt consolidation can come in handy, as both can shorten the repayment timeline.

You're falling behind or are at risk of doing so

Facing issues like late payments, accounts in collections or a constant fear of slipping into delinquency can all indicate that structured debt relief, including options like debt forgiveness, which allow you to settle your debt for less than the full balance, may be worth exploring.

Your debt is affecting your future goals

If you're postponing things like retirement contributions, delaying homeownership or skipping medical care to stay current on your debt payments, there are several debt relief strategies that can help you restore a little financial breathing room.

The bottom line

There's no universal dollar amount that defines "a lot of debt." That amount depends almost entirely on your income and ability to service that debt comfortably. However, certain markers can indicate that things may be taking a turn down that road. If your debt-to-income ratio exceeds 43%, or if you're consistently stressed about money or are using credit to cover basic expenses, your debt has likely reached unsustainable levels. Whatever the indicator is, though, you'll want to recognize the problem early and take action before your financial situation deteriorates further.