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If you earn a monthly salary of $2,100 what is the maximum amount of debt you should have to avoid debt issues?

User Cheikh
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1 Answer

7 votes

Answer:

$756

Step-by-step explanation:

As a rule of thumb, lenders apply the 28/36 rule to determine if a borrower is over-indebted.

The 28/36 rule suggests that individuals should not spend more than 28% of their gross income on household expenses. The debt level should not exceed 36% of gross income.

With a salary of $2,100, the maximum debt should be 36% of $2100.

=36/100 x $2100

=0.36 x $2100

=$756

Maximum debt should be $756

User Basi
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4.3k points