Under the 20-10 rule, how much is a safe debt load for an annual income of $10,000?

The 20-10 rule provides a guideline for individuals to determine a manageable level of debt based on their income. According to this rule, a safe debt load should not exceed 20% of an individual's annual income for total debt and not exceed 10% of annual income for debt payments in a given year.

Given an annual income of $10,000, applying the 20% rule would mean calculating 20% of that income. This results in a total safe debt load of $2,000. This amount represents the upper limit of debt that is considered manageable based on the 20-10 rule, ensuring that an individual does not overextend financially.

Therefore, the correct answer reflects this calculation, confirming that a debt load of $2,000 is appropriate for someone earning $10,000 annually. This approach helps individuals maintain financial stability and avoid overwhelming debt obligations.