Comments on: Debt to Income Ratio http://moneyning.com/debt/debt-to-income-ratio/ A personal finance blog where we share insights on carefully saving money, investing, early retirement, mortgages, stocks because the little things matter in achieving financial freedom! Sat, 21 Nov 2009 10:57:14 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Komodo Dragon http://moneyning.com/debt/debt-to-income-ratio/comment-page-1/#comment-7006 Komodo Dragon Thu, 05 Jun 2008 04:50:32 +0000 http://moneyning.com/?p=914#comment-7006 Its refreshing to see something I learned at college here, and being able to understand all that is written in this post! :) PS: I am a finance major in my 3rd year :) Its refreshing to see something I learned at college here, and being able to understand all that is written in this post! :)

PS: I am a finance major in my 3rd year :)

]]> By: Stephanie @ PoorerThanYou http://moneyning.com/debt/debt-to-income-ratio/comment-page-1/#comment-6994 Stephanie @ PoorerThanYou Tue, 03 Jun 2008 21:11:21 +0000 http://moneyning.com/?p=914#comment-6994 This is counter to all the things I've read. Do banks LOOK at your Debt-to-Income ration? Yes, I'm sure they do. But I was lead to believe it is not a part of your credit score - debt-to-CREDIT ratio is. http://en.wikipedia.org/wiki/Credit_check#Makeup_of_the_credit_score This is counter to all the things I’ve read. Do banks LOOK at your Debt-to-Income ration? Yes, I’m sure they do. But I was lead to believe it is not a part of your credit score – debt-to-CREDIT ratio is.

http://en.wikipedia.org/wiki/Credit_check#Makeup_of_the_credit_score

]]> By: Leslie http://moneyning.com/debt/debt-to-income-ratio/comment-page-1/#comment-6989 Leslie Tue, 03 Jun 2008 15:49:54 +0000 http://moneyning.com/?p=914#comment-6989 Responding to Emily's comment: I think this is only true to a certain degree, because at some point lenders look at your overall available credit. I'd be interested to know if rules have changed in the past several years since I was affected by this, though. One trick I used when I was struggling to get out of almost 2x my salary in credit card debt (now down to zero!) was to cut up all cards except for the one where I had the most available credit, wrap that one in paper then in duct tape, and keep it in my wallet for dire emergencies. I wasn't about to pull that sucker out for anything less than something like being stranded with a broken down car in the middle of nowhere! Responding to Emily’s comment: I think this is only true to a certain degree, because at some point lenders look at your overall available credit. I’d be interested to know if rules have changed in the past several years since I was affected by this, though.

One trick I used when I was struggling to get out of almost 2x my salary in credit card debt (now down to zero!) was to cut up all cards except for the one where I had the most available credit, wrap that one in paper then in duct tape, and keep it in my wallet for dire emergencies. I wasn’t about to pull that sucker out for anything less than something like being stranded with a broken down car in the middle of nowhere!

]]> By: Emily @ Taking Charge http://moneyning.com/debt/debt-to-income-ratio/comment-page-1/#comment-6988 Emily @ Taking Charge Tue, 03 Jun 2008 14:59:13 +0000 http://moneyning.com/?p=914#comment-6988 One way to keep your debt to income ratio high is to keep your credit card accounts open once you pay them off or decide not to use them anymore. Some people make the mistake of thinking they need to close that account, but it actually reduces your credit to debt ratio. So if you have paid off a card and want to get rid of it so you're not tempted to use it anymore, cut it up or freeze it in a chunk of ice in your freezer. That way you maintain a high credit/debt ratio but aren't racking up extra charges. One way to keep your debt to income ratio high is to keep your credit card accounts open once you pay them off or decide not to use them anymore. Some people make the mistake of thinking they need to close that account, but it actually reduces your credit to debt ratio. So if you have paid off a card and want to get rid of it so you’re not tempted to use it anymore, cut it up or freeze it in a chunk of ice in your freezer. That way you maintain a high credit/debt ratio but aren’t racking up extra charges.

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