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Debt Load: More to Think About

In determining your own debt-load limits, you also need to consider:

• The stability of your income
• Your other regular expenses
• Your need for cash from month to month
• The changes in your cash needs as you and your household grow older
• All your personal needs, wants and goals
• Any extraordinary expenses you might have that would affect the standard rules, such as caring for sick family members or special medical needs

Remember that today's debt spends tomorrow's income. And you will have less money now to do things you want to do because you must pay for items you've bought, and in many cases, already discarded. It's important to break the cycle of debt by dedicating yourself to the habit of regular savings.

After all, it's much cheaper to save for an item first than to buy it on credit. This kind of attention to detail will work to keep your future debt load reasonable.