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Debt Consolidation
Debt Consolidation Info:
-Saving
Money for Retirement
-Debt-to-Income
-Do-It-Yourself Debt Relief
-Causes
of Debt
-Controlling
Credit Card Debt
-Eliminating
Credit Card Debt
-Compute
Credit Card Debt
-Total Interest Calculator
-Basics
of Collection Agencies
-Accounts in Collections
-Debt that is Not Yours
-Student
Consolidation Guide
-Bankruptcy
Alternatives
-Get
Debt Free in 2007!
-Debt
Advice
Mortgages
Auto Loans
Personal Loans
Credit Reports
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
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UNDERSTANDING DEBT-TO-INCOME AND HOW IT EFFECTS YOUR
CREDIT
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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More Offers |
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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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