Retirement & Financial Planning Report

Finance companies may approve loans that bring your total debt service to 37% of your after-tax income but, for the sake of safety, you should keep your debt down to no more than 30% of your after-tax income. For example, if you make $80,000 per year and take home $60,000, the total you pay for all of your debts should be less than $18,000 per year (30% of $60,000), or $1,500 per month.