What’s your relationship with debt?

Most people have a relationship with debt. But not everyone is aware of what that relationship is really like. This requires some introspection into your financial habits. Take our quiz (it’s not hard, we promise) and count it as a great step toward improving your financial wellness.

Take the debt health quiz!

Mature couple managing budget and paying bills and taxes. Shot of a lovely mature couple reviewing their finances while using laptop. — Getty Images - Credit: VioletaStoimenova

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How often do you pay only the minimum payment on your credit cards?

Never, I always pay the full amount.

Every 2 or 3 payments.

I can only make minimum payments.

I always pay more than the monthly payment.

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How frequently do you rely on credit cards to cover expenses?

I don’t rely on credit at all.

Sometimes, but not for every purchase.

I don’t keep track but more often than I should.

I rely on credit for over a third of my expenses.

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Have you ever missed or been late on any of your debt payments?

Never. I always pay my bills on time.

I rarely miss payments, maybe once every 3-4 months.

I often miss payments and struggle to catch up.

I don’t remember the last time I paid on time.

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Do you review your monthly expenses and create a budget?

Yes, I have a system to track my spending.

I check my credit card statement each month.

I just try to spend less than I earn.

I have no idea how to track my expenses.

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5. Are you aware of the interest rates on your credit cards or loans?

Yes. I avoid interest fees like the plague.

I know the rate for my credit card. Unsure of the others.

No, but I know they cost me lots of extra money.

I never think about the interest rate.

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Are you able to save a portion of your income each month?

Yes, always.

I do my best to save but can’t always do it.

I really struggle to save. It’s rare I do 2 months in a row.

I don’t remember the last time I had money left over at the end of the month.

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Do you have a plan in place to pay off your debts?

I know the exact month and year they’ll be paid off.

I have a rough plan but could use some guidance.

I've thought about it but haven’t started planning yet.

I can't see a way to pay off my debts.

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Do you have an emergency fund to cover unexpected expenses?

Absolutely, I make it a priority to save for emergencies.

I try to save for emergencies, but it's challenging.

I don't have an emergency fund. I rely on credit to handle unexpected expenses.

I struggle to meet basic expenses and can’t save for emergencies.

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9. How many credit or store cards do you currently carry a balance on?

None.

A few credit cards, but I am paying them regularly.

I have more than 2 credit cards with a balance and am trying to reduce them.

I have a more than 2 that are maxed out and they cause me a lot of stress.

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How often do you worry about money?

I worry I’ll never have enough to feel safe.

Not regularly, only for expensive purchases.

I think I’m doing OK, so I don’t worry much. Maybe I should though.

I worry, but I don’t know what to do about it.

You're a debt-free achiever!

You likely have little to no debt, are good at creating and sticking to a budget and finding savings whenever you shop. You make a real effort to only use credit when you have to and always have a plan to pay off any debt you do have. Well done!

No one has perfect spending habits though and there are always ways to improve your financial health. We look forward to sending you some of articles in our monthly newsletter. Here are some blogs we think you might like:

With many restaurants asking you to tip more, and even places that didn’t have tip options adding them what should you do? Is it ever OK not to leave a tip? And should you feel obligated to tip a higher amount? We answer those and more in our blog about tipflation here.
We know everyone is trying to save money on food these days. One of the best ways to spend less is to reduce your food waste. We look at 6 simple ways to lower the amount you throw away.

You’re debt conscious

You do a good job of keeping track of your debt and you do your best to stick to a budget. Life gets in the way sometimes though and plans go awry. Still, you pay your bills on time way more often than not and when you do miss a payment you can come up with a plan to pay it next time.

Budgeting is something you do but likely not something you enjoy too much. You’re generally pretty good at shopping for sales and keeping your spending under control. When it comes to credit you use it when you need to or when it’s more convenient for you. You keep good track of your bills and always make an effort to pay more than the minimum at least.

Here are some finacial literacy blogs we think would be helpful for you.

First, if budgeting isn’t your strongest suit maybe it’s because you aren’t using the right one for you. There’s more than one way to budget. We’ve collected the pros and cons of 5 different methods here.
Second, if you’re looking for ways to save money when shopping, one of the best things you can do is be... disloyal. That’s right: never feel obligated to be loyal to a product, store or brand if there’s a cheaper alternative that works better/just as well. We look at how to become a disloyal customer.

You're debt-dependent

You likely have a balance on your credit card(s) right now and use credit to pay for much of your spending. You do your best to make payments on time but aren’t always successful.

You may or may not have a formal budget but you track your spending enough to know about any debt issues you may have. It’s possible that you’ve tried or are considering trying some ways of lowering your debt on your own.

You may have also thought about taking on a small part-time or gig work job to help catch up on your bills. You likely feel that your debt may be getting beyond your control.

Remember there’s no debt problem that can’t be fixed. Here are some resources that might help you:

We look at some of the most common DIY Debt Relief solutions people can do on their own. Not every debt problem requires professional help and there are actions you can take right now to help lower and remove debt.
What are the best ways to budget as a gig worker? If you’re thinking about taking on more work to help you afford your bills this is essential reading.

You may be dealing with a debt crisis

Your answers point to a form of debt crisis. It’s a stressful position to be in, but it’s likely something you already knew. Perhaps this is the first step you’re taking to address it; in which case you are making progress. It takes courage to face the reality of your financial situation.

As someone in a debt crisis your credit card(s) likely have a high balance and you’re struggling to afford your bills. You do your best but feel like you’re never getting ahead of your debt and that your spending is beyond your means.

You may have tried some DIY debt relief solutions but found they didn’t have enough of an impact.

There is no debt problem that can’t be solved though. Here’s some resources to reassure you that there is help available.

Do you know what a Licensed Insolvency Trustee is? They help people become debt-free. They’re the only people who are allowed to file legal agreements that can stop creditors from calling you, renegotiate your debt and lower your debt monthly payments. Find out all about Licensed Insolvency Trustees and how they can help you here.
We know many are often worried to talk to a professional about their debt. Our Trustees provide a judgment-free, empathetic space for those looking to remove debt from their lives. We look at what happens during the first debt help meeting. Did you know it can be done in less than one hour?