How deep in debt are you!?

[shmike]

Originally Posted by Rider

The amount of debt is relative to:

A)The amount of credit you have vs the amount of credit you use

B)Your income.


I know people that have over $100K in car loans. They also make over $250K/year.

There are also people that have a $10K car loan that are making under 20k/year. The amount of debt is not important. The important number is your income to debt ratio.

Debt to income is all well and good until that income dries up.

A better indicator is debt to asset ratio.

I know quite a few people that were making big money ($500k+) during the "boom days" of real estate.

They could easily afford the fancy cars, boats and houses they had....

...until they were out of a job.