Article

Do you own your debt, or does it own you?

Having a strategy can help you stay in control

Debt can help you accomplish major goals and build your credit history, but it’s important to use debt responsibly. Using the right strategy to paying down debt and limiting how much you borrow can help you manage it.

Key Takeaways:

  • Debt can help you meet major goals and build your credit, but it’s important to use debt carefully.
  • Try to limit debt payments to no more than 36%* of your income.
  • If your debt feels manageable, you can decide whether to pay off high-interest debt first or small balances.
  • If you’re struggling with debt, you may want to consider consolidation, refinancing, balance transfers and other strategies.
  • A UBS Financial Advisor can help you come up with a plan for managing your debt so that you can focus on other areas of your life.

*“The Basics of Debt-to-Income Ratios,” Credit.org. https://credit.org/2011/04/07/debt-to-income-ratio/.

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