It can be confusing to know what you really can afford. You will always get approved for more debt than you can sustainably afford. The math has been done for you, here is what you actually can afford:
You can afford a house that is 3x your household annual income.
- ex. your income is 50k a year, your house should be no more than $150k
You can afford a car that is 1/3 your household income.
- ex. your income is 50k a year, your car should be no more than $16k
You can afford a student loan that is equal to your projected annual income.
- ex. expect to make $50k a year, your student loan should be no more than $50k