What Is a Credit Limit?
A credit limit is the maximum amount of credit a lender allows you to use on a credit card or another revolving credit account.
For example, if your credit card has a $5,000 credit limit, you generally cannot carry more than $5,000 in purchases and other eligible transactions at one time unless the issuer allows transactions above the limit.
Your available credit changes as you:
- make purchases;
- make payments;
- receive refunds;
- incur fees;
- complete balance transfers;
- take cash advances.
Understanding your credit limit is important because it affects how much you can borrow, your available credit, and potentially your credit utilization.
This guide explains how credit limits work, how lenders determine them, what happens when you reach your limit, and how to manage your available credit responsibly.
Important: This article is for educational purposes only and is not financial advice. Credit card rules, fees, credit reporting practices, eligibility requirements, and consumer protections vary by country and card issuer.
What Is a Credit Limit?
A credit limit is the maximum balance a lender generally allows on a revolving credit account.
Credit cards are one of the most common examples.
Suppose your card has:
Credit limit: $4,000
Current balance: $1,000
Your available credit would generally be:
$4,000 − $1,000 = $3,000
If you pay down the $1,000 balance, your available credit generally increases again after the payment is processed.
How Does a Credit Limit Work?
A credit card is a revolving line of credit.
Unlike a traditional installment loan, you can usually:
- Borrow using the card.
- Repay some or all of the balance.
- Use the available credit again.
- Repeat the process while the account remains open and in good standing.
Your credit limit sets the maximum amount of credit the issuer is generally willing to extend.
Credit Limit Example
Imagine you have a credit card with:
Credit limit: $10,000
Current balance: $2,500
Available credit:
$10,000 − $2,500 = $7,500
You then make a $1,000 purchase.
New balance:
$3,500
Available credit:
$6,500
If you later make a $1,500 payment, your balance may fall to:
$2,000
Your available credit may then increase to approximately:
$8,000
Exact timing depends on when the issuer processes the payment.
What Is Available Credit?
Available credit is the amount of your credit limit that has not yet been used.
A simplified formula is:
Credit Limit − Current Balance = Available Credit
Example:
Credit limit: $6,000
Balance: $1,500
Available credit:
$4,500
However, pending transactions, holds, fees, and payment processing can affect the number shown in your account.
Credit Limit vs Available Credit
These terms are related but different.
Credit limit:
The maximum amount the lender generally allows you to borrow.
Available credit:
The portion of that limit you can currently use.
Example:
Credit limit: $5,000
Balance: $2,000
Available credit: approximately $3,000
Your credit limit may stay the same while available credit changes every day.
Credit Limit vs Credit Card Balance
Your credit limit is not money you own.
It is the maximum amount of credit the lender makes available.
Your balance is the amount you currently owe.
Example:
Credit limit: $8,000
Balance: $2,500
You do not have $8,000 of extra income.
You have access to borrowed money up to the terms of the account.
How Is a Credit Limit Determined?
Credit card issuers may consider several factors when deciding your credit limit.
These can include:
- income;
- existing debts;
- credit history;
- repayment history;
- credit score or equivalent risk indicators;
- existing relationship with the lender;
- other credit limits;
- internal underwriting rules.
Different lenders may assign very different limits to the same applicant.
Income and Credit Limits
Income can affect how much credit a lender is willing to provide.
A lender may want to understand whether your income is sufficient to manage potential debt payments.
Higher income does not guarantee a higher credit limit.
Other risk factors still matter.
Existing Debt
Lenders may review how much debt you already have.
Examples include:
- credit card balances;
- personal loans;
- vehicle loans;
- mortgages;
- other financial obligations.
Someone with significant existing debt may receive a lower limit even with a relatively strong income.
Credit History
Your credit history may show how you have managed borrowing in the past.
A lender may review factors such as:
- payment history;
- account age;
- existing balances;
- recent credit applications;
- previous defaults or late payments.
A longer positive credit history can sometimes support access to larger limits.
Credit Score and Credit Limits
In countries where credit scores are widely used, your score may influence credit card approval and credit limits.
A credit score can help lenders estimate lending risk.
However, it is only one factor.
A strong score does not guarantee a particular limit.
New Credit Users
People with limited credit history may initially receive smaller credit limits.
For example:
First card limit: $500
After a period of responsible use, the issuer may decide to increase the limit.
This allows the lender to evaluate payment behavior before extending additional credit.
What Is a Good Credit Limit?
There is no universal good credit limit.
A useful limit depends on:
- your income;
- monthly spending;
- ability to repay;
- financial habits;
- credit utilization;
- emergency needs.
A $2,000 limit may be sufficient for one person.
Another person may need a much larger limit for normal monthly spending.
A higher limit is not automatically better if it encourages overspending.
Is a Higher Credit Limit Better?
A higher credit limit can have advantages.
It may provide:
- more purchasing flexibility;
- more available credit;
- lower utilization when spending remains unchanged;
- additional emergency capacity.
But it can also create risks.
A larger limit may make it easier to accumulate more debt.
The most important factor is how you use the credit available to you.
What Is Credit Utilization?
Credit utilization measures how much of your available revolving credit you are using.
A simplified formula is:
Credit Card Balance ÷ Credit Limit × 100
Example:
Balance: $1,000
Credit limit: $5,000
Utilization:
$1,000 ÷ $5,000 × 100 = 20%
Credit utilization can be relevant to credit scoring systems in some countries.
Credit Limit and Credit Utilization Example
Suppose your balance is $2,000.
If your limit is $4,000:
$2,000 ÷ $4,000 = 50%
If your limit increases to $8,000 and your balance remains $2,000:
$2,000 ÷ $8,000 = 25%
The larger limit reduces the utilization percentage because the balance did not increase.
However, this only helps if you do not use the extra credit to take on more debt.
Does Using Your Entire Credit Limit Hurt Your Credit?
Using a large percentage of available revolving credit may negatively affect certain credit scoring models.
It can also indicate financial stress to lenders.
Even if you never miss a payment, consistently carrying balances close to your limits can reduce financial flexibility.
Lower balances generally provide more room for unexpected expenses.
Is There a Perfect Credit Utilization Percentage?
There is no universal percentage that guarantees a particular credit score.
Different scoring systems may evaluate credit utilization differently.
Rather than trying to target one exact number, a practical approach is:
- avoid maxing out cards;
- keep balances manageable;
- pay on time;
- repay balances whenever possible.
If credit scoring is important in your country, lower utilization may generally be preferable to very high utilization.
What Does Maxing Out a Credit Card Mean?
Maxing out a card means using most or all of the available credit limit.
Example:
Credit limit: $3,000
Balance: $2,950
Available credit: approximately $50
This leaves very little room for:
- emergencies;
- recurring charges;
- fees;
- temporary transaction holds.
A maxed-out card may also be difficult to repay if interest accumulates.
What Happens When You Reach Your Credit Limit?
What happens depends on the issuer and account terms.
Possible outcomes include:
- new transactions being declined;
- reduced available credit;
- possible over-limit treatment where permitted;
- account review;
- difficulty processing recurring payments.
Do not assume your card will automatically allow purchases above the limit.
Can You Spend More Than Your Credit Limit?
Sometimes a transaction may be approved even when it causes the balance to exceed the stated limit.
This depends on:
- the card issuer;
- account settings;
- local rules;
- transaction type.
In other cases, the purchase will simply be declined.
Check your card agreement instead of relying on over-limit spending.
What Is an Over-Limit Fee?
Some credit card agreements may impose fees or other consequences when your balance exceeds the credit limit.
Rules vary by country.
Before using a card, review:
- over-limit policies;
- applicable fees;
- authorization rules.
Avoid intentionally relying on over-limit transactions.
Pending Transactions and Credit Limits
Pending transactions can temporarily reduce your available credit.
Suppose:
Credit limit: $2,000
Posted balance: $500
Pending hotel transaction: $400
Your available credit may reflect both the posted and pending amounts.
This can make available credit lower than expected.
Holds and Preauthorizations
Some businesses place temporary holds on credit cards.
Common examples include:
- hotels;
- car rental companies;
- fuel stations.
A hotel might place a temporary authorization higher than the final bill to cover potential additional charges.
This can temporarily reduce your available credit.
Why Is My Available Credit Lower Than Expected?
Possible reasons include:
- pending purchases;
- merchant holds;
- annual fees;
- interest charges;
- balance transfers;
- cash advances;
- payments not yet processed.
If the number does not make sense, review recent transactions or contact the issuer.
How Payments Affect Available Credit
When you pay your credit card, your available credit generally increases.
However, the increase may not happen instantly.
The issuer may wait until:
- the payment is received;
- the payment clears;
- internal verification is completed.
Large or unusual payments may sometimes take longer to become fully available.
Statement Balance vs Current Balance
Your statement balance is generally the balance recorded at the end of a billing cycle.
Your current balance reflects more recent account activity.
Example:
Statement balance: $800
New purchases since statement: $200
Current balance: $1,000
Your available credit usually reflects the more current account activity.
Credit Limit vs Statement Balance
Your credit limit sets the maximum available revolving credit.
Your statement balance tells you how much was owed when the billing statement was generated.
They serve different purposes.
Always check:
- payment due date;
- minimum payment;
- statement balance;
- current balance;
- available credit.
Can a Credit Limit Increase Automatically?
Yes.
Some issuers periodically review accounts and may increase limits automatically.
They may consider:
- payment history;
- spending behavior;
- income information;
- account age;
- overall risk.
Automatic increases are not guaranteed.
Can You Request a Credit Limit Increase?
Many card issuers allow customers to request a higher credit limit.
The process may be available through:
- online banking;
- mobile app;
- phone support.
The lender may ask for updated financial information.
When Might a Credit Limit Increase Make Sense?
A higher limit may be useful if:
- your income increased;
- your normal monthly spending has increased;
- you consistently pay responsibly;
- your current limit is restrictive;
- you want more available credit without increasing spending.
Do not request a higher limit simply to finance purchases you cannot afford to repay.
Will Requesting a Credit Limit Increase Affect Your Credit?
It may.
Some lenders may perform a credit inquiry when reviewing the request.
Others may use existing information or a type of inquiry that does not affect scoring in the same way.
Before requesting an increase, ask the issuer whether a new credit check is required.
How to Improve Your Chances of a Credit Limit Increase
Possible factors that may help include:
- paying bills on time;
- maintaining the account responsibly;
- keeping income information current;
- reducing existing debt;
- avoiding repeated credit applications.
There is no guarantee of approval.
Each lender uses its own underwriting criteria.
Can a Credit Limit Be Decreased?
Yes.
A lender may reduce your credit limit.
Possible reasons include:
- missed payments;
- reduced account activity;
- increased perceived risk;
- changes in credit history;
- changes in the lender’s risk policies;
- broader economic conditions.
A reduction can happen even when you did not request it.
How Can a Lower Limit Affect Credit Utilization?
A lower limit can increase utilization even if your balance does not change.
Example:
Balance: $1,500
Old limit: $6,000
Utilization: 25%
New limit: $3,000
Utilization: 50%
This is one reason a limit reduction may affect your credit profile in scoring systems that use utilization.
Can an Issuer Close an Unused Credit Card?
Possibly.
Some issuers may close accounts that have been inactive for a long period.
An account closure can reduce your total available credit.
If you want to keep a card open, occasional appropriate use may help, but policies vary.
Total Credit Limit Across Multiple Cards
If you have several credit cards, your total credit limit is the sum of their individual limits.
Example:
Card A: $3,000
Card B: $5,000
Card C: $2,000
Total credit limit:
$10,000
This can be relevant when calculating overall credit utilization.
Overall Credit Utilization
Suppose:
Total credit limits: $10,000
Total balances: $2,000
Overall utilization:
$2,000 ÷ $10,000 × 100 = 20%
Some credit scoring systems may examine both:
- utilization on individual cards;
- overall utilization.
Individual Card Utilization
Imagine:
Card A limit: $5,000
Card A balance: $4,000
Card B limit: $5,000
Card B balance: $0
Overall utilization:
$4,000 ÷ $10,000 = 40%
But Card A utilization is:
$4,000 ÷ $5,000 = 80%
This is why concentrating balances on one card can look different from spreading the same debt across several cards.
Credit Limit on a Secured Credit Card
A secured credit card generally requires a security deposit.
Depending on the issuer, the deposit may influence the initial credit limit.
For example:
Security deposit: $500
Credit limit: $500
However, structures vary.
Some secured cards may offer a different relationship between deposit size and credit limit.
Credit Limit on an Unsecured Credit Card
An unsecured credit card does not generally require a cash security deposit.
The issuer determines the limit based on its underwriting process.
Factors can include:
- income;
- credit history;
- debt;
- risk profile.
Credit Limit on a Business Credit Card
Business credit limits may be determined using information about:
- business revenue;
- company history;
- owner creditworthiness;
- existing debts;
- industry;
- account activity.
Terms differ significantly among lenders.
Business cards may also have different consumer protections than personal cards.
Credit Limit vs Charge Card
A traditional credit card normally has a stated revolving credit limit.
Some charge cards may operate differently and may not display a traditional fixed spending limit.
That does not mean unlimited spending.
Approval can still depend on factors such as:
- payment history;
- recent spending;
- account history;
- financial profile.
Always review the specific card terms.
Credit Limit vs Loan Amount
A credit limit applies to revolving credit.
A loan amount is typically a fixed amount borrowed once.
Example:
Credit card:
$5,000 credit limit that can generally be reused as it is repaid.
Personal loan:
$5,000 borrowed once and repaid according to a schedule.
These are fundamentally different structures.
Credit Limit vs Minimum Payment
Your credit limit determines how much credit is available.
Your minimum payment is the smallest payment generally required for a billing cycle.
Example:
Credit limit: $5,000
Balance: $2,000
Minimum payment: perhaps a much smaller amount determined by the issuer.
Paying only the minimum can cause debt to remain outstanding for a long time and may result in substantial interest charges.
Credit Limit vs APR
Credit limit:
How much credit is available.
APR:
A measure associated with the cost of borrowing.
A card can have:
- a large credit limit;
- a high APR.
These are independent features.
A higher limit does not mean cheaper borrowing.
Does a Higher Credit Limit Mean More Interest?
Not automatically.
Interest is generally related to the balance you carry and the card’s interest terms, not simply the size of the credit limit.
Example:
Credit limit: $10,000
Balance: $0
You generally are not paying interest merely because the limit is $10,000.
But if the larger limit encourages you to carry a larger balance, your interest costs could rise.
Does Income Determine Your Exact Credit Limit?
No.
Income is only one part of lending decisions.
Two people with identical income may receive different limits because of differences in:
- debt;
- credit history;
- repayment behavior;
- lender relationship;
- underwriting models.
Why Did I Get a Low Credit Limit?
Possible reasons include:
- limited credit history;
- lower income;
- high existing debt;
- recent credit applications;
- lender risk policies;
- previous payment problems.
A low initial limit does not necessarily remain permanent.
Responsible account management may lead to future increases.
What Should You Do With a Low Credit Limit?
If the card meets your needs, focus on responsible use.
Possible strategies include:
- keep spending manageable;
- make payments on time;
- pay balances down regularly;
- avoid maxing out the card;
- update income when appropriate.
Later, you may consider requesting an increase.
Can You Make Multiple Payments Per Month?
Many issuers allow multiple payments during a billing cycle.
This can help when a low limit restricts normal spending.
Example:
Limit: $1,000
Spend: $500
Pay: $500
Available credit may return after processing.
You can then use the card again.
Do not confuse frequent payments with increasing the actual credit limit.
Credit Cycling
Repeatedly charging and repaying very large amounts relative to a card’s limit can sometimes be viewed differently by issuers.
For example, repeatedly spending several times the credit limit during one billing period by making frequent payments may trigger account review.
Use the account according to its intended terms.
If your legitimate spending consistently exceeds the limit, consider asking the issuer whether a higher limit is appropriate.
How Much of Your Credit Limit Should You Use?
There is no single percentage appropriate for everyone.
From a financial management perspective, focus on:
- spending only what your budget supports;
- avoiding balances you cannot repay;
- keeping sufficient available credit;
- avoiding unnecessary interest.
If credit utilization affects your credit score, lower utilization can generally be preferable to repeatedly approaching the limit.
Should You Keep Your Balance Below 30%?
You may hear a rule suggesting utilization should stay below 30%.
This can be a useful general reference in some credit scoring environments, but it is not a universal threshold.
There is no guarantee that exactly 29% is good and 31% is bad.
Credit scoring is more complex than one fixed rule.
Lower utilization is generally safer than consistently high utilization.
What Is the Best Way to Use a Credit Limit?
A responsible approach is to treat the limit as a maximum, not a spending target.
Instead of thinking:
“I have a $10,000 limit, so I can spend $10,000.”
Think:
“My budget determines how much I can spend. The limit is only the maximum the issuer allows.”
This distinction can prevent debt accumulation.
Credit Limits and Emergency Spending
A credit card can provide temporary access to funds during an emergency.
However, a credit limit should not replace an emergency fund.
Borrowing can create:
- interest;
- minimum payments;
- additional financial pressure.
Building cash savings can reduce dependence on credit during emergencies.
Credit Limit and Large Purchases
Before making a large purchase, consider:
- your available credit;
- ability to repay;
- interest cost;
- credit utilization;
- merchant authorization holds.
A purchase being approved does not mean it is affordable.
Credit Limit and Recurring Payments
Subscriptions and recurring bills can consume available credit.
Examples include:
- streaming;
- insurance;
- phone bills;
- software;
- memberships.
If available credit becomes too low, recurring payments may fail.
Keep enough room for expected charges.
Credit Limit and Hotel Reservations
Hotels may place temporary holds larger than the expected nightly cost.
For example:
Room charge: $500
Temporary hold: $700
The extra $200 may cover potential incidental expenses.
If your available credit is limited, this can create problems during travel.
Credit Limit and Car Rentals
Rental companies may place a temporary authorization hold on your card.
The hold can reduce available credit until it is released.
Before traveling, check:
- available credit;
- rental company policies;
- expected deposit or hold.
Cash Advances and Credit Limits
Some cards have a separate cash advance limit.
For example:
Overall credit limit: $5,000
Cash advance limit: $1,000
You may not be able to withdraw the entire $5,000 as cash.
Cash advances can also have different:
- fees;
- interest rates;
- interest timing.
They can be expensive.
Balance Transfers and Credit Limits
Balance transfers also use available credit.
If your card has:
Credit limit: $5,000
You may not necessarily be able to transfer a full $5,000 balance.
Fees and issuer limits may reduce the amount available for the transfer.
Can You Transfer More Than Your Credit Limit?
Generally, a balance transfer cannot exceed the amount the issuer allows.
The maximum transfer may be less than the total credit limit.
Always check specific balance transfer terms.
Credit Limits and Fraud
Fraudulent transactions can temporarily consume available credit.
If you see unfamiliar charges:
- review the transaction;
- contact the issuer promptly;
- follow the issuer’s dispute procedures;
- secure your account.
Liability protections vary by jurisdiction and card agreement.
Should You Set Credit Card Alerts?
Alerts can help you monitor your account.
Useful alerts may include:
- transaction notifications;
- balance alerts;
- payment due reminders;
- available credit alerts;
- suspicious activity notifications.
This can help prevent accidental overspending.
Setting Your Own Spending Limit
Your issuer may provide a $10,000 credit limit.
You do not have to use it.
You can create a personal monthly spending limit.
Example:
Issuer credit limit: $10,000
Personal budget limit: $1,500
Your personal limit is based on what you can comfortably afford, not what the lender will allow you to borrow.
Why Your Personal Limit Matters More
A lender evaluates whether it is willing to lend you money.
That is different from deciding how much you should spend.
Your personal budget should consider:
- income;
- savings;
- essential expenses;
- debt;
- financial goals.
Do not outsource spending decisions to your card issuer.
Credit Limit Increases and Overspending
A limit increase may lower utilization if your spending stays unchanged.
But consider this example:
Old limit: $5,000
Balance: $1,000
New limit: $10,000
If you then increase spending until the balance reaches $6,000, the additional credit did not improve your financial position.
A higher limit only helps when it is managed responsibly.
Should You Accept an Automatic Limit Increase?
There is no universal answer.
Possible benefits:
- more available credit;
- potentially lower utilization;
- additional flexibility.
Possible downside:
- greater temptation to borrow.
If increased access to credit would make overspending more likely, you may prefer not to rely on the additional capacity.
Can You Ask for a Lower Credit Limit?
Some issuers may allow you to request a lower credit limit.
This could help someone who wants to reduce borrowing temptation.
However, lowering the limit can increase credit utilization if you carry a balance.
Consider both behavioral and credit-profile effects.
Credit Limits and Multiple Cards
Having multiple credit cards can increase total available credit.
Potential advantages:
- backup payment method;
- lower overall utilization;
- different card benefits.
Potential disadvantages:
- more accounts to manage;
- greater temptation to borrow;
- more payment dates;
- potential fees.
More available credit is not automatically better.
Should You Open Another Card for More Credit?
Opening another card only to increase available credit should be considered carefully.
A new application can affect your credit profile in some systems.
It can also increase complexity and borrowing capacity.
Before applying, ask:
Do I actually need another account?
Can I manage another payment date?
Does the card provide useful benefits?
Would increasing my existing limit be simpler?
Credit Limits and Budgeting
Your budget should control credit card spending.
A simple system is:
- Decide your monthly spending budget.
- Use the credit card only for planned purchases.
- Track spending.
- Keep enough cash available to pay the bill.
- Avoid treating unused credit as income.
This makes the card a payment tool rather than a source of lifestyle financing.
Example of Responsible Credit Limit Management
Suppose:
Credit limit: $8,000
Monthly planned card spending: $1,200
You spend approximately $1,200 on normal expenses.
You keep enough cash in your bank account to cover the purchases.
You make the required payment on time.
The remaining available credit is not viewed as money available for extra spending.
This can help maintain financial discipline.
Common Credit Limit Mistakes
Common mistakes include:
- treating the limit as income;
- maxing out cards;
- ignoring available credit;
- requesting higher limits to finance unaffordable spending;
- carrying unnecessary balances;
- forgetting pending transactions;
- relying on cards instead of emergency savings;
- assuming a higher limit means better finances.
Your credit limit is a borrowing boundary, not a financial goal.
Mistake: Spending Up to the Limit
A $15,000 credit limit does not mean you should spend $15,000.
The limit reflects what the lender allows.
Affordability depends on your own financial situation.
Mistake: Making Only Minimum Payments
If you carry a large balance and make only minimum payments, repayment may take much longer and interest costs can accumulate.
Check the repayment information provided by your issuer.
Whenever possible, avoid carrying expensive revolving debt unnecessarily.
Mistake: Ignoring Interest
A large credit limit may make large purchases possible.
But if you cannot repay the balance within the applicable interest-free period, interest can make the purchase substantially more expensive.
Always consider total repayment cost.
Mistake: Assuming Available Credit Means Available Cash
Available credit is borrowed money.
It is not the same as:
- income;
- savings;
- emergency cash.
Every dollar borrowed may need to be repaid according to the card terms.
Mistake: Ignoring Limit Changes
Review account notifications.
An issuer may:
- increase your limit;
- decrease your limit;
- change account terms.
A lower limit can suddenly reduce available credit.
How to Monitor Your Credit Limit
You can usually find your credit limit in:
- online banking;
- mobile app;
- monthly statement;
- account agreement.
Review it periodically along with:
- current balance;
- available credit;
- statement balance;
- payment due date.
A Simple Credit Limit Checklist
Before using a credit card, know:
- your credit limit;
- available credit;
- current balance;
- statement balance;
- minimum payment;
- due date;
- APR or borrowing cost;
- fees.
Before making a large purchase, ask:
- Is this in my budget?
- Can I repay it?
- How much available credit will remain?
- Will the transaction create a large utilization ratio?
- Could a merchant place an additional hold?
Before requesting a higher limit, ask:
- Why do I need it?
- Has my financial situation improved?
- Will the issuer perform a credit inquiry?
- Will more available credit encourage overspending?
Questions to Ask Your Credit Card Issuer
If your credit limit is unclear, ask:
What is my current credit limit?
What is my available credit?
Are pending transactions included?
Can transactions exceed the limit?
Are there over-limit fees or restrictions?
How can I request a limit increase?
Will the request require a credit inquiry?
How long do payments take to restore available credit?
Is there a separate cash advance limit?
Understanding these details can prevent surprises.
Final Thoughts
A credit limit is the maximum amount of revolving credit a lender generally makes available on your credit card.
For example:
Credit limit: $5,000
Balance: $1,000
Available credit: approximately $4,000
Your available credit changes as you make purchases and payments.
Credit limits can also affect credit utilization, which may influence credit scoring systems in some countries.
A higher credit limit can provide more flexibility and may reduce utilization when your balance remains unchanged.
However, a larger limit is not additional income.
The most important rule is simple:
Let your budget determine how much you spend — not your credit limit.
Use credit carefully, monitor your balances, pay on time, and avoid borrowing more than you can comfortably repay.