Debt Management
It would be almost impossible for anybody in this day and age to go through life without some debt. The key is to understand what is 'good' debt and what is 'bad'.
At Reid McGill we can help you understand the difference between the two and will develop and implement strategies to help you work on reducing debt whilst maximising any secure lending opportunities for building your wealth.
See where you fit within this simple debt check:
High Debt-to-Income Ratio
Your debt-to-income ratio measures the amount of debt you have against your income. You can calculate this ratio by dividing your total monthly debt payment (excluding mortgage/rent) by your total monthly gross income (before taxes). For example, $500 in total monthly debt payments divided by $2,000 in monthly gross income results in a debt-to-income ratio of 25 percent. If you have a debt-to-income ratio near or over 20 percent, this is a sign that you may have a debt problem.
Do you have a problem with debt? Here are some signs to watch out for:
- Your balances are greater than 80% of your credit limits.
- You can't pay off your combined credit card debt within 12 months.
- Using credit cards for small purchases such as petrol and food.
- Reliance on credit for emergencies.
- Always paying the Minimum payments.
- Skipping payments on a regular basis.
- Unsure of the Amount Owed on combined debt balances.
Give Reid McGill a call on 02 6674 5007 if you want to understand how we can help you manage your debt.