How to know if I’m overindebted?

The debt-to-income ratio helps us determine how much of our salary we should allocate to the payment of debts, including credit card, loans, purchases, car fees, etc.

To perform the calculation you only have to add all your debts

To perform the calculation you only have to add all your debts

That is, the amounts you must pay monthly, and divide them by your salary. The number obtained must be multiplied by one hundred, and so you will have the salary percentage that you should use to keep your debts up to date.

For example: Ana has a debt for a vehicle loan and pays 600 soles monthly, in addition, the card fee is 100 soles per month and finally, she pays 80 soles for her cell phone. So we have their debts total 780 soles. If your salary is 2500, we make the division and it is 0.31, which, being multiplied by 100, gives us 31%. It means that Ana must allocate 31% of her salary to pay off her current debts.

If you perform the calculation and your result is more than 35%

Then you have more debts than you can pay. Experts recommend that the maximum percentage (some say up to 40%) be allocated to the payment of such expenses. It is usually associated with emotions, that is, we are sad or very happy and the desire to buy something appears.

However, these purchases almost always end up hurting us because it is something that is almost never useful. That is why in this article we present some tips to overcome these impulse purchases.

If your percentage is very high, you know you should stop spending so much; On the contrary, if it is very low, you could afford some extra things without being affected. For example, you could request a card and use it when there is an opportunity to earn benefits. To compare all the cards in the market and see which one may suit you, use the Nerdesortes Blendores comparator .