How to Handle Debt

How much debt is too much? It depends. That's not the answer you wanted, perhaps, but it's the only sensible one: It depends on how easily you can repay the money and what you borrowed it for in the first place.

The stories below will help you realize whether you've taken on too much debt and, if so, how to get it under control. If you're too far in over your head, we also explain the basics of bankruptcy, which always should be a last resort.

Warning Signs of Too Much Debt

You're headed for trouble if you pick up these distress signals.

How to Handle Debt

There are several steps you can take to ensure your credit rating isn't ruined.

Bankruptcy: The Last Resort

The law doesn't make it easy, and it's not something you should tackle on your own.

Adapted from Kiplinger's Practical Guide to Your Money, by the Editors ofKiplinger's Personal Financemagazine (Kaplan Publishing. Copyright 2005 The Kiplinger Washington Editors, Inc.) Available wherever books are sold or direct at kiplinger.com/store/books.