Alan’s Financial Tips – Warnings for Excessive Debt

Rule 20

Total consumer non collateral debt should not exceed 20% of net monthly income.

Rule 28

Total collateral debt should not exceed 28% of net monthly income.

Rule 36

Total debt should not exceed 36% of net monthly income.

There is a high incident of default when debt exceeds any of these limits, and most always when debt exceeds Rule 36 limits.

Alan Friedberg – 5/7/2019