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Your debt to income ratio is probably the strongest gauge of your financial portrait. You can figure out what your debt to income ratio is by dividing your monthly debt payments by your gross income. For example, lets say you have a monthly income of $3,000, with $500 worth of monthly debt obligations. To calculate your debt to income ratio, you would divide $600 by $3,000, giving you 20%.

The formula for calculating your debt to income is used by almost all lenders. Someone will vary it slightly. However, the basic concept will always be the same: debt to income evaluates how much debt you have compared to the total income you earn.

The ideal debt to income ration would be 12% or less. Having a low debt to income ratio will allow you to obtain lower interest credit cards, mortgages, auto loans, etc..

Having a debt ratio that is 20% or higher is typically looked at as high, labeling applicants as high risk. However, getting approved for a auto loan or even for a mortgage with Star Loan Services will not be difficult with a debt to income ration of 20-30%. How? Because having 80 - 70% disposable income is considered more than enough by Star Loan Services.  We also feature bad credit credit cards that grant approval to people with less than perfect debt-to-income ratios.

The following facts are true:
  -- It was reported by BusinessWeek that the total household debt in the United States totaled greater than 100% of our disposable yearly income last year.
  -- The total consumer debt of Americans is equal to more than 2 trillion dollars.
  -- The average credit card debt for Americans is over $9,000. Total credit card interest costs in 2005 were over 75 billion dollars. That equals to over $1500 per consumer. The average American has 7 credit cards with 15% of them maxed out.
  -- Over 1.25 million people declared bankruptcy last year.

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- Joining the credit monitoring system will help you safeguard your credit and identity. As a member, you will also learn how to manage your credit.

- Enroll in our debt consolidation program and get your finances back on track. Eliminate unsecured debts by as much as 60%.


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