You got it made, Greger. And once you sell your won estate, you can afford that ticket, and might even have some money left over to pay off your creditors.
Welcome back, dockside!
For a person leaving within their means the total debt to income ratio (including housing expense) is around 35-41%.
No one I know has that low of a income-to-debt ratio ratio of 35% - 41%.
Me neither, rick. Most middle class people I know are paying 30-50% on their house note and various insurances. Don't even start on credit cards!
I'd love to see some hard data on that. Got any, kap?
If you look at what Kap wrote (quoted above), he said for
a person living within their means not most people.
Thanks for the tip, olyve. I was hoping hard data would lead us to recognize
how many Americans are living within their means. I regret that my hasty style may have left the impression that I was disputing kap's assertion.
A rudimentary search yields this factoid from the always reliable
Pew Trust:As expenses have risen, middle income Americans have taken on more debt, often borrowing against homes that, at least until recently, had been rising rapidly in value. The median debt-to-income ratio for middle income adults increased from 0.45 in 1983 to 1.19 in 2004. Ratios have also increased for upper and lower income adults, but not by as much.
Just a quick review: median means there are an equal number below and above that point. So for every middle income American whose DTI is less than 119%, there is one whose DTI is
above 119%.
