Financial advisers have long warned people against taking on too much debt. But as debt loads for companies and individuals climb, a growing number of people -- from regulators and Wall Street analysts to home lenders and economists -- are picking up the cry.
This growing fondness for moderation is fueled by a multifaceted expansion in borrowing:
- Climbing housing debt, along with a sharp increase in delinquencies and foreclosures.
- Record levels of margin debt, or money borrowed to buy stocks.
- Government figures showing that consumers for the past two years have spent more than they made, something that hadn't happened since the Great Depression.
As a growing number of people get swept up in the borrowing binge, this is a good time to assess your finances and determine how much debt is too much.
