I have a total take home yearly wage of $66,744 and total debt of $177,000 at the average int.rate of 6.5%?
How long is it going to take to pay off the debt (mortgage+HELOC+credit card+student loans+……), and what is a good debt to income ratio?
In order to figure out what your debt to income ratio, you need more info than you shared here. Below you will find a site that should give you an idea of what shape you are in.
The amount you owe is relevant only when measured against your income. The more you make, the more debt you can afford to take on. Fill in the blanks to get a rough idea of your debt-to-income ratio—and whether it is already higher than is considered manageable on your income.
Monthly mortgage or rent:
Minimum monthly credit card payments:
Monthly car loan payments:
Other loan obligations:
A. MONTHLY DEBT PAYMENTS:
Annual gross salary:
Bonuses and overtime:
Other income:
Alimony received:
B. TOTAL (before tax, divided by 12):
A ÷ B =
divider
Your debt-to-income ratio
36% or less: This is a healthy debt load to carry for most people.
37%-42%: Not bad, but start paring debt now before you get in real trouble.
43%-49%: Financial difficulties are probably imminent unless you take immediate action.
50% or more: Get professional help to aggressively reduce debt.
Source: Gerri Detweiler, author of The Ultimate Credit Handbook
