Posted on
August 7, 2009
at
3:04 am
Any suggestions on how to go about reducing debt ratio, please? Thank you
Posted on
August 7, 2009
at
3:53 am
One way to go about reducing debt ratio is to increase your monthly income. If it's possible, you may opt to ask for a raise from your current employer. Or, you may choose to sell some stuff, or take a part-time job. Having another job may sound taxing at first, but keep in mind that it only will be a short-term solution, not just to improving your DTI ratio, but for your financial situation.
Posted on
August 11, 2009
at
1:15 pm
The only other way is to reduce your debt either by using a debt settlement company (which I don't recommend if you are current and you want to maintain your credit score) or to be patient and develop a strategy to pay off your debt. How quickly you want to reduce the debt will determine how aggressive you want to be.
Posted on
August 11, 2009
at
1:19 pm
I assume you are referring to your debt to income ratio? Or do you simply mean how can one reduce their debt?
Posted on
March 22, 2010
at
5:55 am
Reducing debt ratio - i think Purple Cow has answered that - but like what Steven was saying - if you're referring to debt to income ratio - if you don't know how to calculate it -
To get your debt to income ratio, use this formula:
Gross monthly income (x) .36 = Debt to Income RatioFor example your gross monthly income is $2000 (x) .36 = $720
*Your gross monthly income is your full salary without tax and other deductions. $720 is your debt to income ratio. It means that your debt payments should not be more than that amount. Creditors look at it to determine your ability to repay debt. If what you are paying monthly for debt alone exceeds 36% then they would consider you a credit risk. Your chances of getting good credit is
