Debt is like cholesterol. A certain level is good, even necessary for life. However, too much will steal from your future and devastate you.  

• Monthly student loan payments should not exceed 8 to 10% of gross monthly income.  
  

• As debt exceeds 15% of gross income it becomes more difficult to manage.  
  
  
• The general rule of thumb for managing households is to keep monthly debt payments to a maximum of 20% of gross monthly income.
  
  
• For someone making $5,000 a month before taxes, this means keeping car payment, credit card payments, etc, to $1000 per month or less.
  
  
• This figure does not include mortgage payment, which is considered a form of safer debt because it’s backed by property.
  
  
• The idea of good debt is dangerous, because it encourages people to buy more house than they need or can comfortably afford considering their other financial obligations and goals.
  
  
• Total debt payments should be comfortably less than 50% of gross monthly income. This formula leaves some income left over each month for spending money, savings, investments, wants and the unexpected “stuff” that inevitably happens.