LOGIN

Forgot User ID
405.235.3030 or 800.678.5363


A variety of accounts to suit your needs.

Open a WEOKIE account online and see why managing your finances couldn't be easier.

Open An Account Today

     

    Low Rates. Great Service.

    Apply for an Auto Loan without ever stepping foot in a branch.

    Apply Now!

    View Rates

    Auto Loan Payment Calculator

    Make A Payment

       

      WEOKIE: your one-stop-shop for everything homes!

      From finding the home of your dreams to financing it, closing the loan, and even insuring it... we want to make every step in your home-buying experience as easy and as affordable as possible.

      Apply Online


      Home Loan Rates

         

        Lending a hand when you need it

        From auto loans to refinancing a mortgage, WEOKIE has the resources and tools to create a lending program tailored to your needs. 

        Apply Online    

        View Rates

        Make A Payment

          COMMERCIAL LOANS

          Commercial Loans

             

            Easy and convenient banking.

            WEOKIE's e-Statements, Bill Pay, and Online and Mobile Banking are services aimed to make your life a little easier.

            Log In Now

               

              We are here to help.

              At WEOKIE, our purpose is to build strong communities by supporting financial growth and well-being, one person at a time.

                4 min read

                How Much Debt Is Too Much? How (The Wrong) Debt Can Negatively Impact Your Life

                Featured Image

                From the cost of housing to groceries, life is anything but cheap these days. For many of us, it can be easy to let debt creep up…. But exactly how much debt is too much?

                 

                Knowing How Much Debt Is Too Much

                 

                You may have a nagging feeling that you’ve taken on too much debt — or breathing space to feel like you could take on a little more. But in fact, knowing how much debt is too much starts with calculating what’s called your “debt-to-income ratio.” This looks at how much debt you’re responsible for paying each month compared to what you earn monthly. In general, experts say your debt-to-income ratio should be less than 30%.

                 

                There are also other signs to watch out for that indicate you may be in over your head. “The more lagging indicators that are more of a flashing red light are: you're making minimum payments on credit cards, you're robbing Peter to pay Paul, you're taking out loans to stay current on other obligations, or you're borrowing from retirement,” explains Greg McBride, Chief Financial Analyst for Bankrate.com.

                 

                Having too much debt can have myriad negative consequences, some of which you might not expect. Here’s a look at some of the ways debt can negatively impact your life, and why it’s important to try to start paying it down, ASAP.

                 

                With Too Much Debt, Emergencies Can Be Extra Challenging

                 

                Having too much debt can put you in an extra precarious situation if an emergency arises. For example, if you were to lose your job unexpectedly or encounter a medical emergency, your monthly debt obligations might be such that there’s no room in the budget to cover both the emergency and your bills, leaving you to have to make a terrible choice.

                 

                “There are lots of circumstances where we have no control over things, and carrying too much debt for too long puts you at a lot of risk,” says Matt Schulz, Chief Credit Analyst at LendingTree. Having too much debt likely means you have less money to tuck away in your emergency fund. It could also hinder your ability to obtain the assistance you need as you navigate a rough patch in life. For example, too much debt can tank your credit score (more on that in a sec), making it more difficult (or expensive) to be approved for a credit card or a loan, says Schulz.

                 

                Debt Can Keep You From Reaching Your Long-Term Goals

                 

                Racking up too much debt can keep us from reaching our long-term financial goals, such as buying a house or saving enough for retirement, which can have a far-reaching effect on our lives. “That's a big deal because money that's going towards debt isn't going towards an emergency fund, a college fund or retirement fund, mortgage down payments, a house remodel, or things that can really help you financially going forward,” notes Schulz. “It really does tie your hands in a lot of ways.”

                 

                Debt Can Damage Your Credit Score

                 

                Having too much debt can take a significant toll on your credit score, and the financial ripple effect continues from there. While many of us know that a lower credit score will translate to higher interest rates when we need to borrow money for a house, a car, or any other type of loan, it can also impact us in areas we might not expect. “It can even [result in higher] insurance premiums or cell phone bills,” says Schulz. “When your credit score gets hit, it just makes so many other things more difficult.”

                 

                Debt Can Limit Future Career Opportunities

                 

                Believe it or not, too much debt can even stand in the way of advancing your career. “It could be a barrier to opportunities. Whether that’s funding future education needs, accumulating seed money so you can start a business someday, or even just accumulating savings so that you can engineer a career change,” McBride says.

                 

                According to a report from the National Association of Background Screeners, 95% of companies complete some kind of background check on prospective employees. 16% of employers say their background check includes credit or financial checks on candidates. If your credit or financial history isn’t the greatest, it could indicate a lack of responsibility to a potential employer, which may make that company think twice about hiring you.

                 

                Debt Can Impact Your Health

                 

                If you’ve been in debt, you likely know how stressful it can be. Having too much debt long-term can take a serious toll on your physical and mental health. “The physical wear and tear on people caused by long-term financial debt is something that isn't talked about enough,” says Schulz. “Honestly, overwhelming debt just consumes your life.”

                If excessive debt is keeping you up at night, after you get on a plan to pay it down (which is always the best thing you can do to start feeling empowered!) Schulz recommends simple de-stressing techniques including simply taking a walk, a yoga class, or any other physical activity that can help you decompress.

                 

                When You Know How Much Debt Is Too Much…And You Have “Too Much”

                 

                Keeping debt down is essential to a successful financial life. If you’ve answered the question “How much debt is too much?” and you know you fall into the “too much” category, know that by taking the right steps, you can dig yourself out. “Recognizing the problem is the first and most important step,” says McBride. “What you do next has to be geared toward putting a plan into effect and making progress, whether you are able to look yourself in the mirror and commit to doing it on your own or whether you need some assistance.”

                 

                One of the best places to seek assistance is at your local credit union. Ask your credit union for recommendations on how to get back on track and formulate a plan to pay your debt off, ASAP. For many, paying down debt begins with baby steps, some of which are noted here. If you want to take a deeper dive into tackling your debt with help from a dedicated coach, check out FinanceFixx, HerMoney’s 8-week program to help you build better money habits that can last a lifetime.

                Related Posts

                Credit Card Debt: The Best Debt Repayment Methods


                Owning a credit card and using it to build credit and to rack up rewards like cash back and travel bonuses can be a wonderful thing. We often need...

                Smart Spending #3: Why You Shouldn't Put Everything On A Credit Card, And How to Dig Yourself Out Of Debt


                So, you’ve run up a hefty balance on your credit card and you have no clue how you're going to pay it back. Maybe it doesn’t seem like a big deal to...

                Credit Card Debt: The Best Debt Repayment Methods


                Owning a credit card and using it to build credit and to rack up rewards like cash back and travel bonuses can be a wonderful thing. We often need...

                How Much Does It Cost To Raise A Child? How Parenthood Changes Your Finances


                Having a child turns your world upside down (in the best way), and forces you to rethink nearly every aspect of your life…including your finances. If...