Has Your Debt Grown Out of Control?
The rule of thumb on measuring personal debt is that debt payments should not exceed 20% of take home pay. Remember that this does not include mortgage debt.
For every $1000.00 in take home income, you should not be paying more than $200.00 for debt.
Where do you fall?
| Monthly Take Home Pay | Monthly Debt Payment Max (20% or less) |
| $1000.00 | $200.00 |
| $2000.00 | $400.00 |
| $3000.00 | $600.00 |
| $4000.00 | $800.00 |
| $4000.00 | $800.00 |
| $5000.00 | $1000.00 |
| $6000.00 | $1200.00 |
| $7000.00 | $1400.00 |
| $8000.00 | $1600.00 |
| $9000.00 | $1800.00 |
| $10000.00 | $2000.00 |
If you are paying more than 20% of your monthly take home income in combined credit card, car and student loan payments, you may need help with debt relief. Consider calling one of our credit counselors to discuss your options. A personalized debt management program may help you get out of debt and stay out of debt.