How to know about the safe amount of debt?

Deal Score0

I am planning for loan. I don’t have any idea about the debt management. Anybody suggest me the safe amount of debt?

3 Comments
  1. Reply
    condor1
    July 21, 2011 at 4:09 am

    30% of your total wage would still leave money to live a good life

  2. Reply
    The Hunter
    July 21, 2011 at 4:33 am

    The hard answer is it depends. 20-30% of your after-tax income is pretty safe. But you should really take a look at all the money you spend each year on things like:

    Food
    Rent
    Insurance
    Car Payments
    Entertainment
    Savings for a rainy day

    Then what you have left with is the amount you can afford to pay each month. Just whatever you do, don’t take on credit card debt, the rates are ridiculous.

  3. Reply
    Sah
    July 21, 2011 at 5:14 am

    The debt ratio depends on the lender’s income. There is no standard safe amount for debt. The safe amount varies according to the income of the person. Lenders typically prefer a maximum debt-to-income ratio of 1:3. Save up your money and then buy something you can afford with cash, rather than incurring a big monthly payment for several years to come. The safe debt also finally depends on your comfort level.

    Leave a reply

    Register New Account
    Reset Password