How to Keep Your Debts Low?
What is this DTI ratio all about?
Front-end ratio- This is a measure of the loan repayment towards house, insurance, property tax, etc.
A high DTI ratio indicates that you have high outstanding debt, though it is the back-end ratio being high that should make you put on your thinking hat. And when you do start thinking here are the tips that you can begin with.
Borrow only when absolutely necessary:
Food and entertainment debts should be under control:
Sharing resources between family members:
Keep the interest on the balance as low as possible:
Don’t yield to the ‘free offer’ temptation:
Start paying cash instead of using the card:
Finally, drawing up a monthly budget is a prerequisite for your family’s financial health. Take time out at the beginning of every month to both draw out a plan for the ensuing month and check the previous month’s expenses.