Comments on: How Much Debt Is Too Much?

By: –› How to Earn High Returns with Lending Club

–› How to Earn High Returns with Lending Club — Mon, 15 Feb 2010 20:21:42 +0000

[...] payments. Technically, borrowers should be able to afford the loan payments as long as their DTI is below 36%, but I’d rather be [...]

By: Dollars Not Debt

Dollars Not Debt — Sun, 31 Jan 2010 04:12:39 +0000

Young people need to realize that a house is they only OK debt. Everything else should be reasonably saved up for before you can afford it. Your great grandmother paid cash, why can’t you?

By: –› 7 Ways to Fix Your Credit After a Foreclosure

–› 7 Ways to Fix Your Credit After a Foreclosure — Mon, 25 Jan 2010 13:31:09 +0000

[...] what is affordable – taking on too large of a housing payment ended in foreclosure. This time, limit housing payments to no more than 28% of your total income, and total housing and other debt payments to 36%. Set [...]

By: Today’s economy media pack – 2009.11.27 | Today's economy blog

Today’s economy media pack – 2009.11.27 | Today's economy blog — Mon, 21 Dec 2009 14:47:02 +0000

[...] Moolanomy. How much debt is too much? “While there are many different opinions as to how much debt is too much, the two ratios below are the most widely used measures of how much debt is manageable.” [...]

By: Jake @ Dollar Commentary

Jake @ Dollar Commentary — Wed, 02 Dec 2009 22:05:44 +0000

I kind of view this as a game, trying to lower the ratios as much as possible.

There’s only two ways to do this, eliminate the debt, or increase the income.

I’ve set goals before to get to certain percentages, and when I had done everything I could to increase my income, it almost became a game to discover new ways to shave a dollar or two off my budget and put that towards paying off my debt.

By: James

James — Tue, 01 Dec 2009 17:08:08 +0000

Jill,

Great posting. What I think this illustrates is that there really isn’t any to improve your ratios except by improving your fundamentals – increasing your income and eliminating your debts.

By: LeanLifeCoach

LeanLifeCoach — Sat, 28 Nov 2009 03:04:57 +0000

I’m with the rest here wanting zero debt. It seems somewhat strange though that the best fico scores come when you have some debt on the books.

By: Rick Vaughn

Rick Vaughn — Sat, 28 Nov 2009 02:11:32 +0000

Interesting post, I know the other commentors here believe that you should have $0 debt. Well that’s great in a perfect world these ratios are definitely more of a good short term goal to shoot for. Thanks for the information.

By: “Black Friday Dubai Shopping” Edition of Weekend Links

“Black Friday Dubai Shopping” Edition of Weekend Links — Fri, 27 Nov 2009 16:39:00 +0000

[...] Moolanomy offers some ideas on how much debt is too much. [...]

By: Johanne

Johanne — Thu, 26 Nov 2009 09:13:50 +0000

Although the ratios are a good basis for monitoring debt, I always feel unesy each time I have debt. i think it’s OCD but I always want my debt to be zero.