As we begin the conversation of credit and debt, sometimes it can become overwhelming to think of how much a person(s) can owe. To help you see if you are having difficulties with your debt to income ratio, take a few moments to answer these questions with either Yes or No. If any of the statements below apply to your financial situation, you may already have a credit problem.
$ Paying only the minimum amount due each month on a credit card or loan
$ Borrowing money to pay fixed expenses such as rent or car payments
$ Opening additional accounts to increase the amount you can borrow
$ Using credit card advances to pay for everyday living expenses
$ Charging on credit cards more each month than you are paying
$ Using savings each month to pay credit debt
$ Have little to no savings
If you recognize any credit problems, begin working on them NOW! Do not ignore or treat as “no big deal.” Make no new charges. Contact creditors if you are going to be late or miss a payment. Contact creditors before they contact you. Be honest. Apply any extra money to pay off your debt or add to a savings account.