Everybody is dealing with debt in one way or another, and some feel as if there is no end to the battle of paying it down. After all, is not being in debt a part of life? It is, however, it does not have to be. In the past, it was a difficult task here in Ottawa to find help with going further into debt by using methods that turned out to be high interest loans designed to keep you in financial distress.
Now there are financial advisors in Ottawa that specialize in helping people climb out of the financial holes they made for themselves. These individuals and organizations are helpful through teaching their clients how to budget and pay a little at a time by focusing on their debt to income ratio. This is not an arbitrary number made up by some Wall Street king pin.
The debt to income ratio is something that Ottawa mortgage businesses use to qualify people for housing loans, and it works by comparing gross income against your expenses and liabilities, (debt). It is found by dividing your total debt by your total gross income and is an indication of your ability to pay. Follow the example below,
A woman pays $1,500 a month for mortgage, $450 for a car loan and $800 for the rest of her liabilities every month. This makes her recurring monthly debt equal to $2,750. If her gross monthly income is $3,000, her ratio would be $2,750 ÷ $3,000 = 0.92, or 92%.
This is a high ratio as it leaves her with a bit over $250 each month. However, as you may guess a lower ratio would be better. An organization that helps people reduce their debt helps find ways to decrease this ratio. Meaning that the lower it gets the better their financial health will become.
The only way this can happen is by being forthcoming with all of your liabilities and expenses in addition to full disclosure of all income resources here in or outside of Ottawa. This is the only way they can get a complete picture of your financial situation. It is a form of credit counselling, and as such, the individual of the company should be prepared to work with you on a long-term basis to reach the goal of reducing your debt.
Need help with Debt Consolidation? You can count on Surgeson Carson Associates for Debt Consolidation advice in Ottawa.
