As sad as it is to say, most folks who are in credit card debt don’t know exactly how much it is that they owe. It just starts to become overwhelming.
So here’s a different spin on things: calculate your debt-to-income ratio. As the folks at Bankrate explain, it’s fairly straightforward — add up your debts (rent/mortgage, credit cards, etc — but not your living expenses like gas, groceries, and utilities) and divide that by your gross income.
If you come out at 36% or less, you’re in pretty good shape. You could expect to find additional streams of credit (like a home loan) available to you. If your ratio is higher than that, you may be in trouble.
_________________________________________
If you are looking to get out of credit card debt, you should subscribe to my newsletter. I paid off over $50,000 in credit card debt in exactly one year. I’m now debt free. In my newsletter, you can learn how to pay off your credit card debt too.
Sign up today and I’ll send you the special report everyone is talking about: 15 Secrets The Credit Card Companies Don’t Want You to Know. You’ll also get tips about how to pay off your debt, how to save money, and how to make more money.
Just provide your name and email address below:
