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Topic	Those feels when 60% of your paycheck goes to bills and 15% to credit card debt.
Zeus 04/24/17 6:56:09 PM #49:	MaverickXeo posted... OneTimeBen posted... MaverickXeo posted... Magus 10 posted... MaverickXeo posted... Rasmoh posted... About 70% of our household income goes to bills including food, it's a little rough. The $1700 mortgage payment is the toughest. 70% is almost twice as much debt as what you should have. Your debt should be equal to around 40% of your income. Seems to me like bills include more than just debt.... Heat, power, water, rent/mortgage, other debts (loans, credit cards, etc), and insurances should be 40%. I am assuming he is not spending 30% on food. Most people don't consider utilities and rent as debts. Those are living expenses. Debt means owing money to a credit company or bank loan. Banks and lenders consider them to be debt. Rent maybe, but not utilities. https://www.biggerpockets.com/renewsblog/what-is-a-debt-to-income-ratio/ What is a Debt-to-Income Ratio? Your debt-to-income ratio, or DTI, expresses in percentage form how much of your gross monthly income is spent on servicing liabilities such as auto loans, credit cards, mortgage payments (including homeowners insurance, property taxes, mortgage insurance, and HOA fees), rent, credit lines, etc. Living expenses such as cable, gas, electricity, groceries, etc., are not considered part of your DTI. And the reason why rent is usually considered debt is because you enter a long-term contract with your landlord. --- (\/)(\/)\|-\| In Zeus We Trust: All Others Pay Cash <cite>Zeus posted [p:877826882] in Those feel... [t:75267262]...</cite> <quote><cite>MaverickXeo posted...</cite> <quote><cite>OneTimeBen posted...</cite> <quote><cite>MaverickXeo posted...</cite> <quote><cite>Magus 10 posted...</cite> <quote><cite>MaverickXeo posted...</cite> <quote><cite>Rasmoh posted...</cite> <quote>About 70% of our household income goes to bills including food, it's a little rough. The $1700 mortgage payment is the toughest.</quote> 70% is almost twice as much debt as what you should have. Your debt should be equal to around 40% of your income.</quote> Seems to me like bills include more than just debt....</quote> Heat, power, water, rent/mortgage, other debts (loans, credit cards, etc), and insurances should be 40%. I am assuming he is not spending 30% on food.</quote>Most people don't consider utilities and rent as debts. Those are living expenses. Debt means owing money to a credit company or bank loan.</quote> Banks and lenders consider them to be debt.</quote> Rent maybe, but not utilities. https://www.biggerpockets.com/renewsblog/what-is-a-debt-to-income-ratio/ <quote>What is a Debt-to-Income Ratio? Your debt-to-income ratio, or DTI, expresses in percentage form how much of your gross monthly income is spent on servicing liabilities such as auto loans, credit cards, mortgage payments (including homeowners insurance, property taxes, mortgage insurance, and HOA fees), rent, credit lines, etc. Living expenses such as cable, gas, electricity, groceries, etc., are not considered part of your DTI.</quote> And the reason why rent is usually considered debt is because you enter a long-term contract with your landlord. --- (\/)(\/)\|-\| In Zeus We Trust: All Others Pay Cash</quote> ... Copied to Clipboard!
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