More For Your Money - University of Illinois Extension
http://MoreForYourMoney.extension.uiuc.edu
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. Stop! You can't afford any credit!
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/
