I am feeling this out on here.
At age 24 what do you think is an "Acceptable" amount to be in debt? This should include your student loan payments, personal loans, credit cards, etc... I am about $24 thousand in debt from 2 yrs of school, and 8 yrs of living on my own...
So, the question is- how much debt do YOU have if you're in your 20s? And what amount of debt should cause worry, how much debt is TOO much debt?
2006-08-11 06:12:27 · 10 answers · asked by melaniecampbell 3 in Business & Finance ➔ Personal Finance
There really isn't an acceptable AMOUNT of debt but there are acceptable TYPES of debt - student loan and mortgage. In general, your income to debt ratio should not exceed 30 percent. If it does, you need find ways to get rid of it. Credit cards should be the first to go. The interest rates are too high and you're basically throwing your money down the toilet. Next, car loans, if you have it, then student loans. Even though mortgage and student loan interest are tax deductible, student loan interest is capped at $2500, so if you accrue more interest than that, then you're out of luck. The goal is to get out of debt so that you can then funnel that money into investments that increase your wealth.
2006-08-11 09:23:18 · answer #1 · answered by SAL 3 · 1⤊ 0⤋
You should have 0, which is hard now of days. Debt is a product of the banks and it is fast ruining our country. Debt is not a tool for the average consumer, it a ball and chain.
Debt is a modern problem (your grand parents didn't have debt) that is effectively marketed. Get rid of it a fast as you can.
I also look at Student Loans as a bad debt. They can garnish your wages without even taking you to court. That's why the rates are so low.
The debtor is slave to the lender.
Take a look at a book called the Total Money Makeover by Dave Ramsey it is a no nonsense look at money.
2006-08-11 10:49:36 · answer #2 · answered by David W 2 · 0⤊ 0⤋
It depends on your goals and expectations in the next few years. If you plan on making 100,0000 a year and live it down a bit for the next few years than there is no issue. If you are going to get an admin job at 30,000 a year and live in a nice place and buy a nice car, than this is a lot of debt.
At 10% interest for ten years, it will cost $317 payment per month to pay it off. That will blow if you monthly income $1800 or so after taxes. If your position is like most of us, I would strongly suggest consolodating this money somehow into a single loan at 7 or 8 %. It should help.
Good luck
2006-08-11 06:27:10 · answer #3 · answered by billyandgaby 7 · 0⤊ 0⤋
Well- I am 28 and I have the follwoing debt ( along w/hubby)-
1. student loans $5000.00
2. car loan $12,000.00
3. medical bills $4000.00
We just sold our first home and made $15,000 which we used to pay off our truck. We are looking for a home, so then we'll have that. I feel okay with the amount of debt we have.
2006-08-11 06:30:15 · answer #4 · answered by messijessi 4 · 0⤊ 0⤋
Get rid of the credit cards today, I know it is hard to hear that. I haven't used one for 2 years and have moe money in my pocket. Try to only have a loan for education and a home. Buy a cheap car and save money for a dream car, this will take 36 months or longer but just think of the smile on your face when you write a check free and clear for it.
2006-08-11 06:24:35 · answer #5 · answered by Wizzerd 3 · 1⤊ 0⤋
That is way too much debt unless you are making over $75,000.00 a year . Plain and simple . Tear up the credit cards and quit spending before you are bankrupt . Ever hear of saving by the way ? Or is that a foreign word to you ??
2006-08-11 10:50:16 · answer #6 · answered by Anonymous · 1⤊ 0⤋
I'm 29, and all I have is a 7 thousand dollar car note. I got a career in high end management, never needed to go school. BTW, my hubby is disabled and the state pays for his schooling and we have 3 kids under age 8. I truly believe in dont do it if you dont have the money. But, we needed the car!
2006-08-11 06:26:07 · answer #7 · answered by Gothic Martha™ 6 · 0⤊ 0⤋
The only debt you SHOULD have is student loan debt. All other debt is bad and unnecessary. Except a mortgage of course.
2006-08-11 06:18:27 · answer #8 · answered by miketorse2 2 · 1⤊ 1⤋
If the interest is more than 10% of your income, you have too much. Any amount of debt is bad expecially Credit card and you should work to eliminate it to the largest extent possible.
2006-08-11 06:19:13 · answer #9 · answered by John F 3 · 1⤊ 1⤋
Consolidate your debts..thats the best option
Strategies to Reduce Debt Quickly
http://www.complete-debt-info.com/category/Strategies-to-Reduce-Debt-Quickly.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html
2006-08-12 00:00:10 · answer #10 · answered by hen d 2 · 0⤊ 0⤋