How to Use Debt to Income Ratio Worksheets

long list of popular financial tool that helps you in assessing the current level of debt and your ability to make more loans to add convenience to your life. Therefore, all of us should use this handy tool at least once a month to evaluate our economic status. The debt to income ratio worksheets that we are aware of the relevant facts regarding our financial condition, which we usually ignore the hassles of a busy life. If you start using it regularly for a long assessment then you will see how much you gain awareness about your financial habits and how you became aware of their financial transactions through this easy to use financial instrument. But the question is how to use certificates of debt to GDP ratio? Here you can find simple, step-by-step process for the use of debt to income ratio of the leaf and can be easily applied to calculate the amount of debt you owe.

First of all, collect information regarding your monthly debt payments in one place. This may include your mortgage, car payments, student loans, child support and credit card bills, etc. After collecting these pieces of information in one place, just look over the debt-list to see what information is left to the his hand. Put information about text boxes in the first part of a long list and add the total number in the "total monthly debt payments" box.

is the second time to get accurate information about their monthly income you earn in the form of salaries, bonuses, overtime, investment income, etc. Do not forget to divide the annual income of 12 before adding to the debt-list, because you will calculate the level of debt on a monthly basis. Put the information in the appropriate text box and add their total number in the "total monthly debt payment 'box.

Thirdly you have to do one simple calculation in which you have to divide the total monthly debt payments to total monthly income to get the actual debt to income ratio.

An example of how to calculate debt to income ratio:

formula: debt to income ratio = total monthly debt payments / total monthly income

total monthly debt payments: $ 1500
Total monthly income: $ 4000
The debt to income ratio: 0,375 or 37%

Well that's it. You've done successfully.

(See "debt to income ratio lists' on)

Now the question is you have to do with this simple calculation, and where they do not stand with 37% debt to income ratio in the safe zone, or outside financial nje.Odgovor is that if your debt to income ratio to 35% then you in the safe zone, but if it exceeds this level, it could be an alarming sign for your financial future. So make an honest assessment of your finances with this simple financial tool and have an accurate idea of ​​your financial standing.