Answer:
Your total liabilities excluding mortgage debt should not exceed 33 percent of your net worth excluding the value of your home if you are to have a manageable level of debt.
Explanation:
- In order to save the debtors from entering into positions of irrevocable financial damage owing to the debts they are under, the authorities, by law, advise the debtors to keep the liabilities of mortgage debt below 33 percent.
- This helps the debtors to enable themselves to easily manage the debts and not get caught in a financial crisis.