Another crucial component of your plan to get out of debt is the amount you can afford to pay on your debt each month. To come up with this amount, you need to figure out your discretionary income. This is the amount you have for spending after all your financial obligations have been met.
Total your income from all reliable sources including wages, alimony, child support payments, bonuses, or dividends. Then, subtract what you spend each month on required expenses, those items you need for survival. Required expenses include mortgage or rent, utilities, food, transportation, medical expenses, and your current debt payments. This calculation will result in your disposable income.
With your disposable income in mind, you can figure out how much you're able spend to repay your debt each month. Knowing your obligations are already taken care of, think about how much extra money you’ll spend during the month. Subtract this from your disposable income to figure out how much you can spend on your debt.

