How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
How much debt is too much
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How much debt is too much

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Presentation that talks about balancing your debt to income ratio and budgeting.

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  • For example, let’s assume you make $3,000 a month. Let’s also assume you spend $300 on credit card payments and $450 on an auto loan. Your ratio calculation would be $750 / $3,000 = 0.25. Multiply that by 100 for a debt-income-ratio of 25%. In this example, you spend a quarter of your income on bad debt When it comes to debt, whether good or bad, the lower the debt you have, the better. A bad debt ratio beyond 10% is too high and often is a sign that you are overloaded with debt. In this scenario, you would have too much bad debt.
  • Example In our example, Sam's debt to income ratio is 38.5%. This isn't a bad ratio, but it could become worse if Sam increases his monthly debt payments without increasing his income.
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