Property South Africa

Ever wonder how to figure out you debt to income ratio? Lenders use your debt to income ratio to help them evaluate your creditworthiness and debt load. Mortgage lenders use your debt to income ratio to calculate what percentage of your income is available for your monthly mortgage payment after all of your other monthly fixed expenses are paid. To calculate your total debt to income ratio take your total monthly fixed expenses and divide it by your gross monthly income. Monthly fixed expenses are debts like your monthly mortgage payment, lease or car payment, credit card and any other revolving credit balances that will take more than eleven months to pay off and alimony or child support. Your gross monthly income is what you make before taxes are taken out….

When someone is extremely deep in debt, and he or she has no other options to prevent bankruptcy, debt consolidation can be his or her savior. Debt consolidation can also be a very wise choice for someone who has many debts on high interest credit cards. Debt consolidation, quite simply, is the process of taking loans and debts and bringing them into one low-interest loan that can be paid off over varying periods. This is a very good choice for many people because it saves them from having to file bankruptcy. Debt consolidation merely requires collateral (such as a home or vehicle) for the interest rates to be lowered and the customer to be on his or her way to debt free living. Most people understand the basics of debt consolidation, however there are several dos and don’ts in the…