Do I Have Too Much Debt Calculator
Almost everyone carries some debt. We have mortgages, credit cards, student debt… among many other types of loans and major life events. In general, debt payments of more than 40% of your gross income are an indicator of financial distress. When looking at a budget for your monthly paycheck, this is how it breaks down:
• 25% of your salary is consumed by taxes
• 15% of your salary should go to savings
• 60% is left for everything else (rent, food, insurance, medical, allocate 20% for car)
If more than 40% is going to debt payments, then you have less than 20% of your salary to cover your basic living costs. Use this debt management calculator to help gauge your total debt level.