what percentage of my income after tax should go on rent? and what percentage should go on debts?

cosmicwoman99 | 06:16 Wed 02nd Feb 2011 | Body & Soul

4 Answers

I'm keen to pay off my student debt this year...what is a good figure to aim for? do you think people should save something...just in case or focus on paying off debt?

best wishes

suspicious

Secondary cancer

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waterboatman

Just my opinion, but I would clear debts first. Then start saving.

cosmicwoman99

Question Author

I read that even if you have debts you try and save a small bit..just in case of emergencies....although paying off debt first makes sense..

how much

waterboatman

It's your choice, but you are unlikely to be able to save enough to make it worthwhile until your debts are cleared. It is a vulnerable time, but that is life. as i say it's your choice. you know what your income is and how much of it is disposable. As I stated earlier, I, personally, would clear the debt first. But it's your decision.

WELSHYORKIE

I agree with wbm - with interest rates they are at the moment, clearing debt is the better option. If you can save at the same time (difficult, I know) do so but make your priority clearing the debt.

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