HSBC France

Calculate your debt load

Knowing your debt load allows you to:

- estimate how much you would be able to borrow
- assess how much you can save each month
- avoid getting yourself into more debt that you can afford to repay

  • What you need to know to calculate your debt load

To find out your current debt load, firstly add together all your income, adjusted to a monthly basis: your salary, and any allowances, pensions and rents received, excluding income that is for a limited time period.
Then, add together all your expenses, adjusted to a monthly basis: maintenance payments, rent, telephone bills, education and childcare, taxes and current credit repayments.

Your current debt load in percentage terms, is your total expenditure multiplied by 100, divided by the sum of your income. It provides you with an indication of the margin you have available to either save money or repay other creditors.

If two people borrow together (married or unmarried), each one is liable to the bank for the total amount borrowed.
Thus, it is your status as a couple that is taken into consideration.

  • Example

Monthly income €3,800
Monthly rent €900
Monthly student loan repayment €200

Calculation of debt load

   900 + 200 
------------------  x 100  =   29%

It is recommended that you allocate a maximum of 1/3 of your income to repay all your debts, i.e. 33%.
In this example, the level is lower than 33% which makes it possible to save or to take on new debt commitments.

HSBC has a lot of know-how to share with you to help you make your saving or borrowing plans a reality.
Why wait? Contact your local bank advisor right away.

* Dial +33 810 246 810 from abroad.