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How is the credit card debt too? Do I have too much?
in Credit Tips
How is the credit card debt too? Countless people are asking this same question every day. There are many answers to this question, the one that suits your situation depends on many factors.
Credit cards, ideal for emergency situations
Used wisely, credit cards can be a good way to come up with cash for emergencies like car repair bills or to buy such things as airline tickets. Note, however, if you begin to trust their cards for everyday purchases, you may find yourself in serious financial trouble. The interest in paying the monthly balances can add up exponentially until it can be and can not make even minimum monthly payments. This is when credit card companies you have, not a good position to be sure!
How much is too much?
So how much is too much? Many experts say that if you can not pay your balance in full at the end of the month, with too much debt. This is probably the best of all advice. After all, if you can not afford to pay your credit card bill, you probably can not afford to buy whatever you bought it. That's fine, except that on the stage of auto repair? It is likely that you really need to get your car and can not have had a couple thousand dollars there. In this case the credit was really needed.
Examine your debt to income
Another issue to consider is the relationship between debt and income. To calculate this figure, add your total monthly obligations, mortgages, mortgage payments, car payments and payments to debit the card, anything that is owed monthly excluding things like food and services. Take this number and divide by your gross monthly income. If you find that the ratio is greater than 36 percent, beware! This is higher than recommended by financial experts. You'll probably find the payment that is control over the payments on your credit card, simply by not using the cards.
If you are barely able to pay the minimum on your cards each month, you might want to start checking on debt reduction or debt elimination strategies, such as payment of the debt, or advisory debt. How is the credit card debt too? Look at your debt to income ratio. Can you pay in full each month? Are you just feeling the pinch? You may have to take a long hard look at the image of credit card if any of these feel bad.
Credit cards, ideal for emergency situations
Used wisely, credit cards can be a good way to come up with cash for emergencies like car repair bills or to buy such things as airline tickets. Note, however, if you begin to trust their cards for everyday purchases, you may find yourself in serious financial trouble. The interest in paying the monthly balances can add up exponentially until it can be and can not make even minimum monthly payments. This is when credit card companies you have, not a good position to be sure!
How much is too much?
So how much is too much? Many experts say that if you can not pay your balance in full at the end of the month, with too much debt. This is probably the best of all advice. After all, if you can not afford to pay your credit card bill, you probably can not afford to buy whatever you bought it. That's fine, except that on the stage of auto repair? It is likely that you really need to get your car and can not have had a couple thousand dollars there. In this case the credit was really needed.
Examine your debt to income
Another issue to consider is the relationship between debt and income. To calculate this figure, add your total monthly obligations, mortgages, mortgage payments, car payments and payments to debit the card, anything that is owed monthly excluding things like food and services. Take this number and divide by your gross monthly income. If you find that the ratio is greater than 36 percent, beware! This is higher than recommended by financial experts. You'll probably find the payment that is control over the payments on your credit card, simply by not using the cards.
If you are barely able to pay the minimum on your cards each month, you might want to start checking on debt reduction or debt elimination strategies, such as payment of the debt, or advisory debt. How is the credit card debt too? Look at your debt to income ratio. Can you pay in full each month? Are you just feeling the pinch? You may have to take a long hard look at the image of credit card if any of these feel bad.
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