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.


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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.

%


Results

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.

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