Debt to Income Calculation - Formula
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Debt to Income Calculation - Formula
| Thu, 04-29-2010 - 2:38pm |
I had my monthly Wealth Watcher’s meeting today and the topic was debt.
| Thu, 04-29-2010 - 2:38pm |
I had my monthly Wealth Watcher’s meeting today and the topic was debt.
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That seems pretty straight forward. I wish my mom would see this. I also wish it would have a few more categories, because the leap between the last two categories(35-50, and over 50) is a pretty big leap in what it says in the description part.
I have always wondered what BK lawyers do to decide whether or not someone should file or what bankers look at to make those loan decisions. I know it is more than just a calc like this but maybe this is part of it.
See this is a calc that takes out the distinction between good debt and bad debt. Because at the end of the day, you can pay all your bills or can't. It doesn't matter if you have good debt or bad debt. Example: I have a car loan and BF has a student loan and we fall into the 26% category. I know we have to reduce our debt but someone that has less information may be thinking ok well I have this great education and I will have a car at the end so I'm golden. They never count on the unexpected like losing a job or someone getting sick and they should. Now, that is not as to say we couldn't sell the car and get something cheaper or reduce the payments on the student loan but you don't go into those situations planning on those types of bail outs.
Sorry, rambling. Good calc and an indicator if you are totally clueless in my opinion.
Interesting.
Liz
Student loan paid in full 2/2010
Car loan remaining balance
Liz
student loan paid off 2010
Bathroom remodel loan paid off 2013
Pending Car loan to be paid by the end of 2014!!!!!
Tracy those are gorgeous pictures of you and the kids in the flowers....
Sorry for the off topic
Duke
I, too, am confused (not hard to do.)
Robyn CL- Debt Support Group
I think it should be on a monthly basis(it would all work out in the end) EX. monthly car payment + monthly mortgage/ monthly net income x 100 = %
Terri
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