Debt management 2

  IMAGE FROM GOOGLE

MAIN RULES AND DEBT RATIO

•  Note the ratio of debt to income.
  the amount of your debt should not be more than 35% of income your (husband or wife), not earning the join. When you get in the ratio of 45% then you get into the dangerous category.
  Why not join income?. Since this is a form of risk management, in order to maintain if one income stops.
•  Note the ratio of total debt to total assets.
  If the amount of the debt exceeds assets, certainly no difficulty in paying bills. These can eventually lead to bankruptcy. debt ratio can easily be calculated simply by dividing total debt by total assets.
  the lower the ratio the better because it will be better if you do not have too much debt, especially debt nonproductive. lesser amount of debt will also be better, especially if the assets have a market value fluctuates widely.
  DER= DEBT / EQUITY
•  Note the ratio of net income to debt payments
  Ratio to measure the ability to control the debt does not only depend on the number of assets, but also on net income.
  A high ratio of debt to identify strengths better. general, the ratio of at least or minimum should be 2. RATIO = NET INCOME / DEBT PAYMENTS 
 

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