Do I Have Too Much Debt? | Practical Money Skills

Do I Have Too Much Debt?

How much is too much debt? Determine how much of your income is going toward debt.

Average monthly income after taxes


Monthly mortgage payment


Other consumer monthly debt (balance on credit cards, loans, etc.)


Percent of your consumer debt that you pay off monthly.



Your monthly mortgage, plus taxes and insurance, shouldn’t be any more than 28% of your gross monthly income. Your consumer debt shouldn’t exceed 30% of your income. As a rule of thumb, anything more than 30% could negatively affect your credit.