How much of my income should go for loan repayment?

[Kera]

Some people have financial liabilities in the guise of loan repayments. And they have to meet that financial obligation every month. How much percentage of a person's income should be put into repaying of loans for the person to have what to survive with?

 

[Suba]

To maintain your financial stability, financial experts suggest that installments/debt payments should not exceed 30% of your monthly income,

 

[Augusta]

A good general guideline is to allocate no more than 20% of your net income to debt repayment. This is to help you create a balance as you meet other needs

 

[Springtime]

You need money to support your living. I would say allocating 20-25% of your earnings to repay loan should be reasonable.

 

[Nomad]

As much as you can. If you have debt, your first priority should be paying it all so that you can start saving and investing.

 

[Augusta]

The 50/20/30 budget rule suggests that 20% of your income should go towards debt and savings. this is a general guideline though

 

[King Belieal]

As much as you can. If you have debt, your first priority should be paying it all so that you can start saving and investing.

I think this is my own strategy. Everyone should avoid debts at all costs and having to pay your debts off is a very reasonable thing to do. I put more than 50% of my income to clear debts of possible.

 

[eLdavis]

I don't think there is a specific amount for this though, you are free to put in as much as you can to clear it off as quickly as possible.

 

[Stardom22]

I think that depends on so much parameters for that matter. For instance factors like the amount of salaries, like there is something called standard amount of money a per should be paid despite the debt and that also depends on the government policies.

 

[Kross]

I don't think you should take loans that would require you to use more than 30% of your monthly income for repayment.