Help & Tips

Debt limit calculations

The monthly disposable income guideline says that spending more than 20% of disposable (net) monthly income on consumer debt repayment is a sign of financial difficulty.  If the family is larger than average, or the income is smaller than average, or the family wants are quite high, the 20% guideline is a sign of grave financial difficulty.

It is a common challenge for people who share economic resources but do not always share the same financial goals. One partner may want to save as much money as possible to purchase a large ticket item, while the other has a strong need to pursue a hobby or other recreation. Without an endless supply of money, this couple will have difficulty in reaching both of their goals. It is likely they will experience problems in their relationship until they are able to settle their differences.

1. Plan

for the future, major purchases, and irregular expenses.

2. Set financial goals

Set short, mid and long term financial goals.

3. Know your financial situation

Determine your monthly living expenses, irregular expenses and monthly debt payments.

1. Goals must be identified before they can be achieved.

For most of us, it is usual to have more goals than money; priorities must be attached to goals to reflect their importance in our lives. 

2. Evaluation and understanding of present financial resources is basic to future planning.

Assemble all records of income and expenses for the past year, as well as a list of your assets and debts.