How much debt is already a lot?

📌 If you're wondering how much debt you already have, these calculators will help you get the answer. But the basic answer is that it depends on how much you can repay. And 'How much of your debt can you repay?'

📌 If you're Bill Gates, you don't have to worry about having 300,000,000 on your credit card. You're not a millionaire, so if you need to pay back 500,000 on a credit card, you have to worry. One thing is that if you can make 300,000,000 a year (or 300,000,000 an hour), you can use the basic formula used by lenders to calculate whether debt is going to be a problem. This is called the 'debt-to-income ratio (DTI)' and the math is very simple. 'Amount of debt to be repaid' ÷ 'Total monthly income' = 'Amount to be repaid per month' will be expressed as a percentage.

📌 Among your monthly debts, there are things you have to pay, such as mortgages (or rents), to pay for the car credit card; There are school loans and other debts that are due at the end of the month.

Monthly income is the income before taxes, insurance, social security, etc. 3 lakhs per month for mortgages, 100,000 because I bought the car with a loan. Let's say the credit card is 2 lakhs. The amount of debt to be paid back is 600,000 per month. Now let's do the math....'Monthly debt amount (600,000)' ÷ 'Total monthly income (100,000)' = 'W.60 (or) 60%' The result is not good. Your DTI is increasing by more than 50 percent. You will have a hard time paying off your debts. Most lenders accept a DTI of 36 percent, and when they lend you money, they will pay less than usual.

📌 Many financial advisors say that if you increase the DTI by more than 20 percent, you have taken on a lot of debt. Others may accept 28% of DTI as the last. Actually DTI is just calculated by hand. There is no telling how much debt can affect your financial health.