"One advantage of marriage is that, when you fall out of love with him or he falls out of love with you, it keeps you together until you fall in again."Judith Viorst
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Debt-to-Income Ratio - It's Just as Important as Your Credit Score When You're Shopping for a New Home
Your debt-to-income ratio (DTI) is a simple way of calculating how much of your monthly income goes toward debt payments. Lenders use the DTI to determine how much money they can safely loan you toward a home purchase or mortgage refinancing. Everyone ...
How to Find the Best Debt Consolidation Services
Debt counseling services are geared to help families and individuals repair their credit. Debt counseling services are often organizations that are sponsored by the people who you owe money. These debt services are usually classified into two groups: non ...
Watch Debt Disappear
Hey, I'm just a regular person with regular day-to-day problems. Okay, maybe a few more issues than most but that's neither here nor there! I'm making a difference in my life with a great program that I found and I just HAD to pass it along to all the ...
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Debt whether it be mortgage debt, credit card debt, a student loan or anything else is not much fun and when faced with it, people sometimes look for complicated debt solutions and often overlook the many simple ways that you can save money. Believe it or not, one of the simplest and most effective debt solutions is to get hold of a pen and a piece of paper and make a list. By this I mean that keeping a daily record of your expenditure can reveal some interesting facts about your spending and point you in the direction of how you can make easy savings right away. My Father first introduced me to this, showing me the little piece of paper that he kept in his wallet. But at the time I ignored his advice big mistake. It was only a few years later that I tried it, when I wanted to start saving money in order to make a dent in my mortgage loan. But this debt solution is not only useful for helping you to pay off a mortgage - it can help with many other types of debt.
At the beginning of each month, I would just tear a piece off an old envelope and write my salary at the top and then immediately subtract the amount I want to save in order to pay off my mortgage debt. I could then clearly see how much I money I had to get me through the month. I then simply subtracted everything I spent, when I spent it and kept a running total. The key to this is to writing down absolutely everything, no matter how small. I found that it was really easy to do I would either write something down on the list as soon as I spent the money or take two minutes to do it in the evening. Whenever there was a fairly large sum on the list, I would just write down what it was next to the amount, so that I could remember.
Once you have kept your list for a couple of weeks, you already start to make some fascinating discoveries. It was not the big amounts on my list that had to be dealt with, as I had imagined. These were essential things, which there was no way I could do without. However, the small sums on my list were doing the damage! I was buying something to eat every morning before going into the office, but I was totally unaware of what it was costing me. I was spending 2.75 GBP every morning and that was adding up to around 55 GBP per month! As soon as I realised this, I started making my own breakfast. In addition to spotting things like this, I could turn to my list at any point during the month and see how much money I had left until the next pay day. This way, there was never any danger that I would have to go into the overdraft on my bank account.
This in itself represented a real saving that I started making each month and once I did away with one or two other unnecessary expenses, I was making very significant savings, which I then put towards paying off my mortgage debt. Keeping a list of this type is a simple yet powerful tool because it will clearly and simply show you where your money is going, and give you the control to make some changes.
About the Author
Emmanuel Mendonca is the webmaster and publisher of Debt Genius at ">www.debtgenius.com">www.debtgenius.com - a free source of advice on debt consolidation, getting out of debt and on saving money.
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