Debt too steep to be repaid?

“What is a ‘debt too steep to be repaid’?”  Answered yesterday on Social Media 

It really would depend on a few factors, as one person’s overwhelming debt may not seem overwhelming to another.  For example. A 100,000 dollars of debt may be overwhelming to someone making 40,000 a year, but to someone making over a 100,000 yearly, it may not seem so hard to overcome.  Income would play a large factor as to what amount of debt may be overwhelming. The second factor to consider is the terms of the debt.  Is it accumulating interest and fees?  Are the payments you intend on making able to keep up and surpass paying the interest only?  Is there a reasonable payoff timeline and amount?  What is the exit strategy?  Is this debt an investment which when realized will pay off the debt as well as create profit?  (Risk factor analysis) .. And if so, on the chance that the investment fails are you able to absorb any loses?  An individual’s assets also play a large role as to what amount of debt may be too overwhelming to deal with.  If a person is carrying a debt of 1,000,000 dollars but has 5 million dollars in liquid assets, then it should not be overwhelming to consider the debt as reasonable.  Ultimately, the question really boils down to what amount of debt an individual is comfortable with, and it’s a purpose.  Education debt, investment debt or just plain old credit card debt are all factors in deciding if an amount of debt is overwhelming, or just the price paid to move up the long term financial ladder.  The debt, however, must make mathematical sense.  Math does not lie.  If for example, an individual incurs 500,000 dollars in education debt becoming a doctor then the debt could be justified by the salary ultimately earned.  If that same amount was incurred becoming an anthropologist, the math most likely would not make logical sense and that debt could easily be considered overwhelming. Some people have a higher threshold for debt than others, there are no set rules when it comes to debt.  Some have a plan of realistic repayment and others just like to take risks and worry about the consequences (if any) later.  I would say the answer is different for each person… but .. if you get sick to your stomach when you think about the amount of debt you are in, then it’s probably a sign your getting close to too much debt! Remember, if your credit is good, you can restructure your debts with a low interest rate, save money and pay it off faster!  If you need help cleaning up your credit contact us today! 


Attila J. Thiry, Business Development & CEO, NATIONAL CREDIT RESOURCES

PH (844) 462-5700 or (844) GOAL700   DIRECT (253) 227-2809  


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