Your debt-to-income ratio (DTI) is the percent of your gross monthly income that goes toward required debt payments. This number allows potential lenders to see at a glance whether you are likely to be able to afford additional debt payments. Types of Debt-to-Income Ratios Calculating Your Debt-to-Income Ratios Start by determining your gross monthly income, which is your income before taxes and deductions. You can either divide your annual income by 12, multiply your bi-weekly income by 2.17, or multiply your weekly income by 4.33. If you are planning to purchase a home jointly with your spouse, do the same calculations for your spouse’s income and add the results together to get your total household income. Add up all of your potential housing payments for the home you are looking to buy. This includes not only the mortgage principal and interest, but also monthly costs for homeowner’s insurance, mortgage insurance, and property taxes. Then also list your other debt payments, which may include car loan or lease payments, student loan payments, minimum credit card payments, and all other monthly debt payments that appear on your credit report. Calculate your front-end DTI ratio by dividing your housing payments by your monthly income. Calculate your back-end DTI ratio by dividing your total of all debt payments by your monthly income. What if Your Debt-to-Income Ratio is Too High? Lenders vary in the specific DTI ratios they are looking for, but in general, lenders want to see a maximum front-end ratio somewhere between 28% and 31% and a maximum back-end ratio somewhere between 36% and 43%, depending on the lender and loan program. If your ratio is too high, some of these strategies could help you qualify:

Understanding Your Debt-to-Income Ratio

View Resource Understanding Your Debt-to-Income Ratio
Most households plan to live on their regular income, which usually comes in the form of a monthly or weekly paycheck. However, there are always the occasional windfalls when you receive a large amount of money that you may not have been expecting. Some common lump sums come from inheritances, bonuses at work, tax refunds, court settlements, or the sale of investments. If you receive a lump sum of money, it’s important to consider how you can use it to achieve your financial and personal goals. Pay down debt: One of the best long-term investments you can make is to pay off high-interest debt now. This is especially true of credit card debt, which is likely costing you between 10% and 15% a year, which is much more than you can reliably make by investing your money. Even if you can’t completely pay off a credit card, even just paying down the balance makes a big difference by reducing your interest costs each month going forward so you can pay off the credit card faster. Build your emergency fund: Every household should have at least $1,000 saved in an easily accessed emergency fund. That way, if urgent expenses arise, like a car repair, home repair, or need to travel, you have the money available and won’t have to turn to credit cards to cover the cost. Also, to protect against job loss, you should ideally have 3-6 months of basic living expenses saved to cover the regular bills while you look for other work. Save and invest: If you are in a good place financially right now, then it is time to consider how you can make your lump sum of money grow to support you better in the future. Some options in this category include: Treat yourself: Even if you use most of the lump sum for one of the above purposes, consider holding back at least a little of it to spend on something that you have wanted for a long time. Perhaps you have wanted a new TV, new furniture, a vacation, or even just a weekend trip. Spending some money on yourself can give you an emotional boost rather than feeling resentful that you didn’t get to use the windfall you received.

What to Do With a Lump Sum of Money

View Resource What to Do With a Lump Sum of Money
Online shopping has become increasingly common in recent years as a convenient alternative to going out to stores. However, the time and energy you save by shopping online could be lost if you fall victim to identity theft due to a misstep in your online shopping habits. Your first rule when shopping online is only to shop through websites you trust. If you have not heard of a particular shopping site, look for information about it through a search engine to help you figure out whether it has a good or bad reputation. Then, rather than following a link from an email or social media post, go directly to the website where you want to make the purchase. Some sophisticated hackers make dummy websites that look like the real ones, but will steal the information you enter. Wherever you end up shopping, use these tips to help you protect yourself and your sensitive information:

Shopping Safely Online

View Resource Shopping Safely Online
For the small businessperson, number crunching can be mind numbing. However, becoming conversant with a few core concepts can help you get an accurate view of how well your firm is doing. One of the most useful of these concepts is financial ratios. Use and Limitations of Financial Ratios Ratios can tell you how your company is doing, by depicting relationships among your financial statements. The comparisons are useful for determining how well your business is performing, and spotting indicators that show where it is strong and where it is weak. Uses Ratios are important for you to know about because people who can financially impact your business rely on them, including bankers, investors, creditors, and business analysts. If you need financing or a loan — and at some point many businesses do — your company’s financial ratios will likely come into play. A financial ratio analysis can help potential investors make a decision about the long-term profitability of your company and as an investment opportunity. They are useful for your creditors as well when they are trying to decide if it is wise to extend you more time to pay or to allow you to buy further supplies or services from them. These ratios are also a very handy tool for you and your management team to gain an understanding of how well you are doing in your local market or compared to others in the industry as a whole. A ratio is a comparison based solely on a mathematical analysis of proportions, so the size of the firm does not matter. Doing these calculations lets you easily examine relationships between categories on your financial statements and then measure them. This means it is a practical way for large and small companies to compare data. When you can compare your company, whatever size it is, to others across industries, you can more quickly spot strong and weak points and measure your progress. It can help you adapt your company efforts to make the most of current trends. Limitations We base ratios on raw mathematical data, and they are relevant only for the period covered and the data found in the originating financial statements. They are also subject to the accounting methods used. This gives them power, but it also limits their usefulness. Ratios do not give you all the information you need for major decisions. Ratios will never replace experience. They are a tool and not a replacement for, a skilled, adept business owner. They do not include intangibles such as a once-in-a-lifetime chance to move ahead, the vagaries of the current marketplace or the interplay of your management team or other industry power brokers. In many cases, one lone financial ratio does not paint the picture that several can combined and analyzed. Just about any item on financial statements can produce a ratio, but some offer more insight to the small business owner. Essential ratios are liquidity, asset turnover, financial leverage, and profitability. Liquidity Ratios Liquidity ratios reveal whether your company can meet its short-term expenses, which makes them of particular interest to your creditors. The current ratio is a common liquidity ratio. Its equation is: Current ratio = Current Assets/Current Liabilities A high current ratio is attractive to creditors because it shows that, if they choose to do business with you, their risk is low. On the other hand, your shareholders will prefer that you keep a lower current ratio because this indicates that you are keeping your assets at work in growing the business. Two other liquidity ratios commonly used are the quick ratio and cash ratio. The quick ratio makes the calculation more accurate if you have inventory that is hard to liquidate. That equation is: Quick Ratio = (Current Assets – Inventory)/ Current Liabilities There is also a conservative way to calculate liquidity ratios, which is helpful when trying to figure a company’s ability to pay its current liabilities immediately. Here is the cash ratio equation: Cash Ratio = (Cash + Marketable Securities)/Current Liabilities Asset Turnover Ratios It is important to track how efficient your company is at using its assets to generate income. This is the purpose of asset turnover ratios, also called efficiency ratios. These ratios look at the timeframe involved in collecting cash from your customers or how long it takes you to convert your inventory into sales. These are often used with profitability ratios to tell how well a firm is doing. There are a number of equations used for this ratio, including receivables turnover, average collection period, inventory turnover and inventory period. Financial Leverage Ratios If you want to know what the long-term prospects are for your company, you look at financial leverage ratios. These measure the extent that your firm is using long-term debt. It measures your overall debt load and then compares it with your assets or your equity. This shows you how much of your company belongs to you, or to your shareholders, and how much to your creditors. When you or your shareholders own most of the assets, the company is called less leveraged. When creditors own the majority of assets, the firm is referred to as highly leveraged. The two most basic equations for this are: Debt Ratio = Total Debt/Total Assets Debt-to-Equity Ratio = Total Debt/Total Equity Profitability Ratios Profitability ratios measure the success of your business in generating profits. They focus on return on investment, or ROI, from inventory and other types of assets. Investors and creditors are very interested in these numbers. It helps them to analyze resource and asset data to judge ROI and determine if the company is making enough profit from its operations. That is why these ratios get examined in conjunction with asset turnover ratios. There are numerous equations used for these ratios, including gross profit margin, return on assets and return on equity. The bottom line: All these numbers and calculations can be hard to grasp at first go-around. It might also seem they are remote from the day-to-day operations of your business. However, looking at what the pure numbers tell you, with the help of a skilled accountant or financial advisor, can help you make sensible, realistic changes today so your company will prosper in the future.

Financial Ratios

View Resource Financial Ratios
Winter can provide a rude awakening to the state of your bank account when your first energy bill of the season comes in. Especially in parts of the country that often have freezing temperatures outside, keeping your home comfortable can come at a high cost. Thankfully, there are several strategies you can use to reduce the amount of energy you use and keep your gas and electric bills under control this winter. Choose your standard thermostat setting carefully You don’t need to keep your home at a balmy 72 degrees all winter long. The U.S. Department of Energy recommends setting your thermostat to no more than 68 degrees while you are at home and awake. This temperature should feel comfortable if you are wearing a sweater and socks or slippers, and you can also use a throw blanket to help stay warm while you are relaxing. Turn the heat down at night Toss an extra blanket or two on your bed and dial back the thermostat overnight to avoid wasting money keeping your whole house warm when all you really need is a warm bed. Most people will be perfectly comfortable with the temperature as low as at 60 degrees. In fact, research shows that you sleep better in a cool room, somewhere between 60 and 67 degrees. If you want to wake up to a warm house, consider getting a programmable thermostat so you can set the heat to turn back on an hour before you need to wake up. Consider supplementing with space heaters If you spend most of your time in one room of your home, it can be wasteful to heat your whole home to a comfortable temperature. Instead, turn down the thermostat a few degrees and use a space heater to maintain the temperature you want in the room where you are spending time. A space heater is also a good way to keep an infant’s room warm overnight while you allow the rest of the house to get cold. Insulate your home Proper insulation and air sealing will help you keep warm air in your home while the cold air stays out. If you own your home, invest a bit of money this year in improving your insulation, and it will pay you back with lower energy bills. Attic insulation is especially important, and you can also save a lot of money by caulking and weather-stripping your windows. If you are renting, you can use door socks to help seal drafty windows or doors, and take them with you to your next place when you move. Manage windows to your advantage Your windows can be both a liability and an asset for keeping your house warm during the winter. Close your drapes at night to provide extra insulation and keep cold air out. During the day, though, you should open drapes if it is sunny outside. The sun can actually work to warm your home, especially through windows that face the south, which gets the most direct sunlight. Use fans to even out temperatures A basic science lesson will teach you that hot air rises, but unfortunately, you don’t feel much of the air in the top half of a room. You can actually put your ceiling fan to work bringing that hot air gently down to even out the temperature. Flip the switch on the fan so it turns in a clockwise direction at low speed, which will gently push air down without creating a wind chill.

Keep Your Winter Energy Bills Under Control

View Resource Keep Your Winter Energy Bills Under Control
Expected Family Contribution, also known as EFC, tells you what your family should expect to pay for college tuition, fees and room and board. Your family’s financial condition and health help to determine your EFC. EFC uses a formula, created by the federal government to determine how much a family should be able to pay for one year of a child’s college education. Federal, state, and college financial aid programs use the EFC to determine how much financial aid a family and their student are eligible to receive. How EFC is calculated After a family fills out the Free Application for Federal Student Aid or FAFSA, the official EFC is determined. This application asks questions about the student’s and parents’ income, benefits, and assets. The federally established formula takes these into account, in addition to considering family size and the number of family members who will be attending college that year. The financial aid sections of most college websites allow you to estimate your EFC based on a simplified version of the official formula. The information can help give you an idea what to expect when you fill out the FAFSA and get your official EFC. Things that can affect EFC All aspects of your family’s financial situation can affect your EFC. The student’s liquid assets and past tax year income have the most significant impact. The parents’ liquid assets and past tax year income have a lesser effect because parents are not expected to contribute as much of their money as students are. You can appeal to your school’s financial aid office to have your EFC reevaluated due to special circumstances. These may include the loss of a job or a one-time boost in income during the previous tax year. Why you need to know what your EFC is Your EFC will have a significant impact on the amount of need-based financial aid you are eligible to receive. By definition, financial need is the total cost of attending one year of school minus your EFC. Many colleges commit to meeting financial need with a combination of grants, scholarships, student loans, and work-study jobs. Once you know what your EFC is, you can look at the cost of each college and make a guess at how much financial aid you are likely to receive. You can also start planning for how you will pay for college. You can use student savings or income, parent savings or income, or loans to come up with the family contribution.

Expected Family Contribution

View Resource Expected Family Contribution
Most people will need a mortgage to finance the purchase of a home. A mortgage works much like any other loan: You borrow money from a bank, credit union or other lender and then pay it back over time. The main difference? A mortgage is the largest loan that most consumers will take on during their lifetimes. Because of this, it is important for home buyers to understand exactly what goes into a mortgage and what will be required from the prospective home buyer to obtain one. Those buyers who do their research will dramatically increase their odds of obtaining a mortgage that best fits their needs. The basics Once you take out a mortgage, you’ll make monthly payments to pay it back. The duration of your loan varies depending upon what type of loan you took out. Most homeowners go with 15-year or 30-year mortgages. When you send your payment to your lender each month, your dollars will go toward paying off several pieces of your mortgage. There is the principal balance, of course. This is the amount of money you borrowed. If you borrowed $200,000 to pay for your home that $200,000 is your principal balance. You will not only be paying down this balance, though, each time you send in a check. Some of your dollars will go toward paying off your mortgage’s interest. Interest is how lenders make money on your loan. If you take out a 30-year fixed-rate loan of $200,000 with an interest rate of 3.96 percent, you’ll pay $142,080 in interest alone if you pay off the loan at maturity. The reason this figure is so high is that $200,000 is a lot of money, and interest payments add up over time. Part of your payment, depending on the arrangement you made with your mortgage lender, might also go toward paying off your annual property taxes and homeowners insurance premiums. Both of these costs vary. In some parts of the country, homeowners might face yearly property taxes of $10,000 or more. In other parts of the country, that figure might be as low as $2,000. The Federal Reserve Bureau says that the average cost of an annual homeowners insurance policy ranges from $300 to $1,000 depending on the part of the country in which you live and the size of your home. Types of mortgages You can choose from several different types of mortgages. Each comes with its positives and negatives. The two most popular loan types are the 30-year fixed-rate mortgage and the 15-year fixed-rate mortgage. As their names suggest, the interest rate attached to these loans never changes, hence the “fixed rate.” The difference between the two loan types is their durations. In a 30-year mortgage, you’ll make loan payments for three decades to pay off your loan completely. In a 15-year mortgage, you’ll pay for just 15 years. The monthly mortgage payment attached to a 30-year fixed-rate mortgage is lower than it is with a 15-year fixed-rate mortgage because payments are spread out over a longer number of years. However, 15-year fixed-rate mortgages typically come with lower interest rates, which means that homeowners pay less interest during the life of such loans. Homeowners can also choose an adjustable-rate mortgage also. Again as the name suggests, the interest rate on these loans changes during the loan term. Often, the loan will have a fixed rate for a certain number of years, say five or seven. The rate will then adjust based on a host of economic conditions, meaning that the rate can either go up or down. The benefit of an adjustable-rate loan is that the initial interest rate is usually lower than are the ones attached to traditional fixed-rate loans. The risk, though, is that the rate will rise significantly after the fixed period ends. Escrow accounts When you buy a home, you’ll have to pay property taxes. If you are taking out a mortgage, you’ll also need to purchase homeowner’s insurance. Homeowners have the choice to either pay these fees on their own or lump them into their monthly mortgage payments and have their lenders pay them on their behalf. The second option is an escrow account. Consider property taxes: If your property taxes are $6,000 a year, you can either pay this figure in a lump sum or you can add $500 a month into your monthly mortgage payment. Your lender will then put this money into an escrow account — which is an interest-bearing account — and dip into it to pay your property tax bill when it is due. It is a good option for homeowners who do not want to save the large amount of money they’d need each year to cover their property tax bills.

Understanding Mortgages

View Resource Understanding Mortgages

You’ve found your dream home in the perfect neighborhood.

There’s just one problem: You do not know if you can afford the monthly mortgage payments that will come with the home.

Fortunately, there are a series of housing and debt ratios that you can use to determine whether the home you want is also one that you can afford. By studying these ratios, you’ll avoid taking out a home loan that will put you in a precarious financial situation.

Housing-expense ratio

The first of these ratios is the housing-to-expense ratio, also known as the front-end ratio. This ratio will tell you how much of your gross — or pre-tax — monthly income is available for using for your monthly mortgage payment.

In general, you want your monthly mortgage payment — which includes your home loan’s principle, homeowner’s insurance payments, and taxes — to take up no more than 28 percent of your monthly salary. Anything higher than that could place too much of a strain on your household finances, leading eventually even to missed housing payments and foreclosure. Simply put, you cannot afford your mortgage loan payments if they total more than 28 percent of your monthly salary.

To determine this ratio, multiply your annual salary by .28. Divide that result by 12 — representing the 12 monthly mortgage payments you make each year. This will show you the highest housing-to-expense ratio that you can afford.

For instance, if your annual salary is $50,000, your monthly mortgage payment should total no more than $1,166.

Debt-to-income ratio

Your debt-to-income ratio, also known as your back-end ratio, is also important. This ratio tells you how much of your monthly salary is eaten up by all of your expenses, not just housing. Your expenses would include any recurring payment, such as your mortgage loan, car payment, student loan payment, credit card debt and child support.

You want your total monthly debts to account for no more than 36 percent of your monthly income.

To determine your maximum affordable debt-to-income ratio, multiply your annual salary by .36 and divide the resulting figure by 12. For that $50,000 annual salary, the maximum amount of monthly debt obligations you’d be able to afford would be $1,500. Remember, that figure includes your mortgage payment and all other monthly debts.

Loan-to-value ratio

There’s one more ratio you need to know when buying a home. This one, though, determines whether mortgage lenders will approve you for a mortgage for purchasing or refinancing a home.

The loan-to-value ratio spells out exactly what percentage of a home’s value you are asking to finance. When purchasing a home, most private mortgage lenders will want you to put down a down payment of at least 5 percent of a home’s value. This will leave you with a loan-to-value ratio of 95 percent: You are asking the lender to finance 95 percent of your housing purchase.

If you want to eliminate the private mortgage insurance requirement that comes with mortgages with down payments less than 20 percent, you’ll need a loan-to-value ratio of at least 80 percent.

If you want to refinance your home loan, you’ll typically need a loan-to-value ratio of 80 percent or lower. There are programs though, some offered through the federal government, that allow owners with higher loan-to-value ratios to apply for a refinance.

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Understanding Housing and Debt Ratios

View Resource Understanding Housing and Debt Ratios
You know you need a budget. Your household is spending money faster than it is coming in, making bill-paying a monthly adventure. Will you have enough dollars to pay the phone bill this month? How about the car payment? You never know. Fortunately, creating a workable household budget — one that gives you the tools to make sure that you are not spending yourself into debt each month — is less complicated than you might think. All it requires is that you take a honest look at what you spend each month and what you earn. The hardest part is sticking to your budget once you’ve drafted it. Eliminating the Fear From Budgeting The first step is to realize that a budget is not mysterious. As the Website One Money Design says, a budget is nothing more than a financial document that you use to track your income and expenses. You can use electronic budgeting software to create your household budget. Alternatively, you can just use paper and pencil. Choose the method that feels right for you. One Money Design recommends that you set a definite date — one that’s not too far away — to create your budget. If you are married or living with a significant other, you need to include your partner in the budget planning. This is important; a household budget will not work if you are watching your pennies, but your partner is blowing $5 every morning on expensive coffee. When you start to create your budget, you’ll need some necessary paperwork for reference, most notably your most recent bank statements — preferably at least three months’ worth. You’ll also need things like paycheck stubs, rental checks or disability payment stubs that document your monthly income. Income and Expenses To start your budget, list your regular monthly income streams. This will obviously include your monthly salary. It should also include any rental payments you receive, child-support or alimony payments, payments you receive for freelance work, monthly disability payments, and any monthly fees you receive as a result of a legal settlement. Now that you know exactly how much money comes into your household each month, it is time for the trickier part, listing all the money that flows out. A budget typically includes both fixed and variable expenditures. Fixed expenses include your monthly mortgage bill, car loan payment, student loan payment, monthly garbage service and rent. Others vary each month. This includes the money you spend on groceries, electric bills, the phone bill, the money you spend on gas, clothing and the dollars you spend on entertainment. Your budget should also include dollars reserved to build an emergency fund. This way, if an emergency does happen you will not have to add more debt to take care of it. The key to listing expenses is to be realistic. Your budget is not realistic if you do not save any money to go to the movies, eating out or taking short trips. Are you really committed to not having fun for a year or more? You should also adjust your budget regularly. This is especially important. If your company cuts your working hours, shaving dollars off your monthly income, you’ll need to factor that into your budget. If you pay off your car loan, you need to eliminate that expense from your budget. Shoring up Your Budget If you find that you are blowing your budget every month, it might be time to make changes either to your budget or to your spending habits. Maybe you’ve been unrealistic with how much you want to spend on clothing and entertainment each month. Adjust those budget items so they more accurately reflect how you live. Alternatively, maybe you need to change the way you spend. Holidays, for instance, are a terrible time for budgets. It is easy to get carried away on presents and entertaining. Decide exactly how much you are going to spend. Don’t go over that limit, no matter how much advertisers would like you to. You might also adjust your travel habits. It is fun to vacation, but you might want to take shorter trips or stay in less expensive hotels if this would help you meet your household budget goals.

Starting a Budget

View Resource Starting a Budget
Is your debt keeping you awake at night? Do you struggle to make the minimum monthly payments on your credit cards? Are you worried that you’ll never be able to pay back all the debt that you owe? You might be a candidate for a debt consolidation loan. When you take out a debt consolidation loan, you combine all or some of your debt into one loan. Then, instead of making several payments to multiple creditors each month, you make one payment every month until you pay your loan. Debt consolidation loans are the right option for many consumers who are overwhelmed with their debt. However, there are some potential pitfalls to taking out such loans. Credit Counseling Before taking out a debt consolidation loan, you should also sign up with a certified credit counselor. A credit counselor can help you create a realistic budget and understand the reasons for your overspending. You do not want to take out a debt consolidation loan only to run up more debt in the future. Unfortunately, many consumers who takeout these loans do exactly that. Be careful to work with an accredited credit counselor. The U.S. Department of Justice maintains a list of approved credit counseling agencies. You can search for agencies that operate in your state. Debt Consolidation Once you are ready to take out a debt consolidation loan, interview several providers. Different lenders will offer different interest rates and terms with their loans. You want to shop until you find a debt consolidation loan that provides the fees and interest rates with which you are comfortable. Remember, the goal is to pay down your debt as quickly as possible. If you take out a debt consolidation loan that comes with an unnecessarily high interest rate, it will take you longer, and cost you more, to pay down your debt. One of the criticisms of some debt consolidation loans is that consumers can spend more to pay down their debt than they would by just repaying their creditors directly. Of course, the benefits of a debt consolidation loan are three-fold: First, you’ll be making just one payment every month instead of several to a large number of creditors. That simplifies your financial life. Secondly, many debt consolidation providers negotiate with your creditors to lower the amount of money you owe. Finally, when you take out a debt consolidation loan, creditors and collection agencies will no longer harass you. As long you continue to make your monthly payment on time, those intimidating phone calls will stop. The downside of debt consolidation Like most ways to reduce your debt, debt consolidation loans do come with some negatives. First, when you take out one of these loans, your three-digit credit score will fall even further. That is a significant problem. Lenders determine who gets loans and at what interest rates based on their credit score. If your credit score is poor, you might struggle to obtain car or mortgage loans. You might even struggle to get approved for a credit card. So when you do you’ll be paying higher interest rates for the privilege of borrowing money. Secondly, you might lose money when taking out a debt consolidation loan. First, you’ll be dealing with interest rates that are often high. Secondly, lenders usually charge fees — they do vary — to consumers who need debt consolidation loans. This combination means that you might end up paying more money during the long-term to pay off your debt with a debt consolidation loan. Avoiding the pitfalls When taking out a debt consolidation loan, make sure to ask the right questions. You want to make sure that your debt consolidation loan is the first step toward a better financial future. You do not wish it to lead you into further financial difficulties. Ask debt consolidation lenders to provide you a written statement detailing exactly how much your debt consolidation loan will cost. This statement should include your interest rate and any fees associated with the loan. Pay attention to late fees. Make sure they are not exorbitant. You do not want your finances spiraling even further out of control should you make a payment a day or two late. Next, ask your debt consolidation lender how long it will take you to pay back your debt by making your regular monthly payment. You want to remove your debt as soon as you can. If the length of your debt payback seems too long, it might be time to move to a new debt consolidation lender. Ask your debt consolidation lender, too, if they will negotiate with your creditors. You want them to try to reduce the amount of money you owe. Many creditors are open to this. They would rather have some of the money that you owe them and figure that by reducing your debt it is more likely that you will pay them back at least part of what you’ve borrowed. Never agree to a monthly payment that you are not sure you can afford. You do not want a monthly payment that will represent a financial struggle. Before meeting with a debt consolidation specialist, make sure that you know exactly how much money you can afford to spend each month on paying down your debt. Finally, don’t beat yourself up too much. It is not pleasant to admit that you need help paying back your debts. However, in today’s still-challenging economy, you’ll be far from alone. Debt consolidation is not a sign of failure. It is a sign that you are willing to take the steps necessary to rebuild your financial health.

Consolidating Your Debt

View Resource Consolidating Your Debt