Blogging Away Debt Our Journeys to a Debt-Free Life

by Tricia

When you look at my monthly payments towards debt compared to my income (debt-to-income ratio), you will see why my debt is very bad.

I found his handy calculator to use:

Debt to Income Calculator

My monthly debt payments eat up 54% of my monthly gross income (pre-tax).

A “healthy” ratio is under 36%. If you are over 50% it is recommended that you get professional help to reduce your debt because you are in trouble.

And, as I will discuss later, my income just recently increased so I was dealing with this debt with even less income. That is why I will often give tips on how to live frugal because I have been living frugally for quite a while just to make sure bills were getting paid.

Technorati Tags: debt, debt+income

by Tricia

I just checked my email, and out of 20 junk emails, I had 2 that claimed that I can get out of debt. Somehow, I got on some mailing lists. I can only expect to be on more now – LOL!!

I’ve never looked into those emails, but I have a feeling those aren’t the real thing. Remember to always be careful with your personal information. That is solid advice for anything you may decide to sign up for in your lifetime.

And another golden rule usually applies as well….if it looks to good to be true, it probably is.

Technorati Tags: debt, junk+email, personal+information