Salary VS Debt

5502george

….Actually the question is not really IT job related, can mod please delete. Thanks!

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tkerber

5502george wrote: »

Just out of curiosity I was wondering what people made and how much debt they were in.
Not factoring in a mortgage (which may be debt in some cases)

Ill start:

~90,000 YR/USD

12,000 USD in debt

This seems like more of an off-topic subject and not really even related to anything on this forum board. Are you talking about student loan debt or just general debt? Also I will not be contributing to this thread--it's a little too personal to be telling random internet strangers how much debt I may or may not be in and it sounds like you may be seeking financial advice.

I will tell you that a mortgage is in most cases considered a healthy debt or good debt because you're building equity and credit. Lots of credit card debt on the other hand may not be good news.

Here's an article regarding debt-to-income ratios:

Do You Know What Your Debt-to-Income Ratio Is? | Budgets Are Sexy

TheChameleon

I agree posting income is irrelevant, there are a few web sites where you can get income information but simply posting a ratio would be helpful. In terms of debt, Your bank knows everyday about your debt. Your credit card company knows and credit bureaus. In many cases, your employer knows as a condition of employment you may have to release access to your credit history.

My debt: $0
Spending/savings ratio 45/55

Always try to live 50-spending/50-saving. Anything you can do to spend less than 50%, save the remaining percentage for future expenses or wants. The other 50% should be pure savings. Your percentage may vary depending on income. You may be 70/30 or 90/10, etc.

Mortgages "healthy" debt? Not in most cases, people can get in over their head buying big mac houses and being saddled with debt and as we know, can be underwater as the market fluctuates or not understanding life is variable (you could lose your job) and people can't pay the bill. Most people hang on to paying a mortgage all their lives because that is what the banks want you to do. You could be paying into negative equity. So there is not a one size fits all given what is known about people's spending habits from the mortgage melt-down.

Money in a regular bank account is negative growth given 2-3% annual cost of living. A mortgage adds huge interest given the size so it would be logical to ensure you have emergency savings of 8-12 months, and excess savings in a regular account sitting at 1% should be going toward your mortgage to reduce the debt load accumulating at 4-10%.

Start with the highest interests

Credit cards (pay off every month)
Student Loans (Change the order depending on the interest rates).
Loans (Pay more than the minimum, avoid debt accumulation). On a home, car or other large loan debt that is not underwater, use bankrate.com or other calculators to see home much interest debt accumulation you can avoid with extra payments.
Make your money work for you (Pay yourself first).

If you have a hard time tracking your habits, use mint.com or other trusted aggregation service. Make sure you plug in all your credit cards, loans, savings etc. to get an accurate picture of your expenses and net worth.

tkerber wrote: »

This seems like more of an off-topic subject and not really even related to anything on this forum board. Are you talking about student loan debt or just general debt? Also I will not be contributing to this thread--it's a little too personal to be telling random internet strangers how much debt I may or may not be in and it sounds like you may be seeking financial advice.

I will tell you that a mortgage is in most cases considered a healthy debt or good debt because you're building equity and credit. Lots of credit card debt on the other hand may not be good news.

Here's an article regarding debt-to-income ratios:

Do You Know What Your Debt-to-Income Ratio Is? | Budgets Are Sexy