Your Credit?

Debt to Income Ratio

Alright, you are getting a regular paycheck, how you're going to spend your money now is all up to you. Some people say they live from paycheck to paycheck; well, what if a paycheck is not enough until the next one comes? The way we manage our finances and improve our credit score is all about a little smartness coupled with common sense. Remember, don't let money control you, control your money.
A good rule of thumb is 10% to your church, 10% to your savings.
How do you determine the debt to income ratio?

Debt to income ratio is how much money is coming in versus going out in debt payments.

Add up all your debt payments including mortgage principal, property taxes, insurance, credit cards, student loans, car payments, and do the math.Compare the total to the income that you are receiving, monthly or annually.
The debt to income ratio should be 36% or less.
For example, your gross income is $5,000 a month, your total debt payments should be $1,800 or less; if your income is $2,500 your total debt payments should be $900 or less.
Whatever you can to stay out of debt changes your ratio and increases your chance of becoming debt free.
Hint: One percent difference in a $200,000 mortgage can cost $45,000 interest in 30 years.
Review your finances. Restructure your spending. The wise saying goes: Live within  your means.
Be a good steward.