I wanted to introduce you to The Motley Fool. It’s a wonderful Website on all the facts about Personal Finance & it’s geared towards the young at heart. Actually, it’s geared to anybody wanting to know how to become financially educated.
What do I really like about The Fool? This is where I woke up when I started to follow their guide on How-to Guide: Reduce your Debt. More specifically, when I completed step #3 about getting a bird’s eye view of where my family stands, by completing the “Debt-to-Income Ratio” Worksheet (perhaps, I should have called my site “Step #3”!). This was a HUGE eye opener.
So, since it really awoke my senses, I wanted to share their advice with you. My eye opener? I realized that my family carried 86% Bad-Debt-to-Income Ratio! The recommended percentage to carry, if none at all, is 15% or less of your after-tax income! Eeeks! An eye opener, huh?
So, my family is working on erradicating this percentage! And hopefully faster than planned. Try the Fool’s Guidance.
If you care to share, what is your Bad-Debt-to-Income Ratio?