More For Your Money - University of Illinois Extension

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Figure Your Credit Limit

Figure out how much you can afford to pay on monthly credit payments.

Activity

Figure Your Credit Limit

This activity can be printed and completed by hand, or it can be completed online.
1. Monthly take-home pay $
2a. Basic living expenses  
    Mortgage or rent $
    Utilities $
    Food $
    Transportation $
    Clothing $
    Medical expenses $
2b. Total basic expenses
3. Money left after basic living expenses (monthly take-home pay minus total basic expenses)
4. Divide money left after basic living expenses (line 3) by three.
$0 is the dollar amount you can safely spend on credit payments each month.

How Did You Do?
Do you currently spend more or less on credit payments each month?
Are you comfortable with this amount of credit? 

You may want to read more from Credit Card Smarts – Deciding How Much Credit is Too Much (Issue 7) - http://www.ace.uiuc.edu/cfe/ccs/