Debt Care Taker

One of the most important sign you should always monitor when it comes to dealing with debts is the debt to income ratio. It is simply a percentage used to describe how much your debts are compared to your income. Lenders use debt to income ratio to calculate your credit worthiness, while you can use the same percentage to determine if you are dealing with too much debt.

Calculating debt to income ratio is actually pretty simple. First, you need to assess and calculate all your debts. This includes credit card debts, any secured debt, and other obligatory expenses such as insurance that you need to pay each month. With the amount properly calculated, you can move on to the next step.

Next, calculate your net income. If you have £5,000 of income each month and you spend £2,000 on personal needs –such as food, electricity bills, etc. – then your net income is £3,000. Calculating debt to income ratio must always be done using net income instead of general income, since it will give you better results. Additional income such as investment earnings can still be added to your net income.

Now, divide the total debt you need to repay each month by your net income; multiply the result by 100 and you will have the result in percentage. If your debt to income ratio is anywhere above 30%, you should really consider assessing your debts and formulate a plan to repay them. If you can, keep your debt to income ratio below 20% to keep your personal finance well controlled.

Having debt problems is not something you should be ashamed of. A lot of people in the UK are having the same problem as you are right now. Not feeling ashamed will allow you to seek assistance you need to help you solve your debt problems. There are a lot of institutions offering debt assistance across the UK, and we are going to take a look at some of them in this article.

National Debtline is probably the best place to go when you are seeking debt advices. You can simply visit their website or call them directly to get the advices you need based on your situation. The National Debtline provides free and independent assistance for people living in England, Scotland and Wales.

The Consumer Credit Counseling Service or CCCS is another debt counseling institution that offers free debt advice. If you are trying to formulate a repayment plan, this is probably the best institution to contact. Experts at CCCS should be able to help you formulate a repayment plan. The services are offered for free, and they are also independent.

If getting debt advices over the phone is not satisfactory enough for you and you rather meet the advisor in person, then AdviceUK is definitely perfect for you. It is a network of debt advisors offering independent assistances all across UK. Simply visit AdviceUK’s website to find information on a debt expert near you and arrange a session right away. With proper help, you can repay your debts completely in an instant.