Total Debt Servicing Ratio (TDSR) = Debt Repayments/Income (per month)
Many of our textbooks are based on western spending patterns, which I think isn't feasible for Asians. I would target 25% of TDSR. IMO, a household cannot have more than 3 durable goods under instalment (because they are going to be a drag over long-run), whereas housing and vehicles cannot, in combination, exceed 20% of gross combined wage median. Always concentrate on paying off one thing at a time since we only have this much of resources. You see, Asian parents normally pay for their children's university fees. That is a big chunk.
In the USA and Europe, most parents don't. That's why they can have a bigger TDSR. Of course, the most important thing ......
