Usha and Parker have a combined monthly net income of $4,500. They both chip in to pay their $675 rent each month. They also have one outstanding student loan balance of $6,280 and recently added a balance of $1,700 to their shared debt for the laptop they bought last month. How much more debt can Usha and Parker take on and still be within recommended limit?

Usha and Parker should not take another debt to their current situation because their debt to income ratio (DIR) has exceeded the Basic Qualified Mortgage DIR for the common benchmark. The qualified mortgage debt to income ratio is 43% and Usha and Parker debt to income ratio is 47.9%. Debt to income ratio is calculated by dividing total personal debt with net income.