* Borrow only for items that you need and can afford.
* Borrow only when you less each month than you take home.
1 Start with your monthly take-home pay.
This is the amount you have after taxes and other deductions.
2 Subtract the amount you need to make the needs and fixed costs.
These include savings, your mortgage or rent, utilities, food, transportation, child care, medical care, clothing and entertainment. Include payments, based on a quarterly, semi-annually or annually, such as insurance and taxes.
3 Subtract monthly payments for loans and credit cards.
4 The balance is the sum, which can be applied to debt ratio.
Do not think that all of this amount, since emergencies occur, and you may not want to use your regular savings account for small unforeseen expenditure.
Monthly Take $ _______________
Fixed ---- $ _______________
Loans / Credit Cards ---- $ _______________
Additional Amount Available for Debt $ _______________
moral of the story: If you plan to buy a new house or a car, say that you have done, and begin the payment, but himself Within a few months, you will know whether And you really afford to have a little money for repairs, and so do if you are actually buying. If you do not pretend to pay, you are certainly not in a position to know the true constant. time to return on the drawing board and decide what you are willing to forgo, for the new debt.
HOW TO MANAGE CREDIT CARD USE
Many people with credit problems, because they do not keep track of they make purchases with their credit - cards. An easy way to the monthly fee credit cards:
1 Determine the total amount you can be free to bill all your credit card accounts during the month.
2 Keep track of your credit spending in the same way you get a running balance of your current account.
3 Subtract amount each pay a monthly fee to the person you set limits.
4 Stop using your credit cards drawn by the balance to zero.
