It happened so quickly you never saw it coming. In the space of a few years, you’ve gone from receiving generous credit card offers with attractive terms and enticing credit limits to late notices, higher percentage rates and no way around the credit balances that mushroom each month. One reason for this dilemma is that too many consumers fail to stick to their debt-to-income ratio that is supposed to be their financial guideline. The debt-to-income ratio should be calculated often, to get a real picture of where you are financially so you can stay within your means. That way, you can pay your bills and still have money to buy the things you love. You just have to find ways to buy them for less. That old idiom “his eyes were bigger than his stomach,” comes to mind when thinking about debt problems. Consumers see the feast of credit card offers, but forget that they can only stomach so much in monthly installment payments. One way to stay within your means is to use the money saving power of Groupon to shop for your household needs on Overstock.com.
Learning to calculate your debt-to-income ratio is the first step. First add up all of your monthly debt payments and divide them by your gross monthly income. Add up your mortgage, utility expenses, car payment, etc. Next calculate the percentage of your monthly income that debt represents. For example, if you have $2000 in monthly debt and $6000 in monthly income you’ll see that your debt to income ratio is 33%. This percentage is key to managing the amount of money you can spend each month in order to have the means to make it. The problem is most people don’t factor in the interest payments on the credit cards they pay each month and use only the minimum amount due when calculating their debt-to-income ratio. If you add in the additional interest you accrue each month to the minimum payment you make, you’ll have a more realistic picture of what you should be paying each month and can manage your spending. The good thing about shopping Overstock.com is that you can satisfy your shopping hunger by purchasing what you need right from their online store and have them shipped for free. You can save 20% off shoes, 30% off tires, rims and furniture and still furnish your home with the latest trendy décor. Buying low and paying the balance off saves you additional money and helps boost your credit score.
Don’t fall victim to those credit card offers that handcuff you to debt for years. Shop smart, right from your smart phone, and get the deals you deserve on the items you want right now on Overstock.com.