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Debt Ratio
Measure your level of debt in less than 10 minutes thanks to this easy and effective tool.
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Your result
YOUR DEBT RATIO :
Congratulations! Your debt ratio is at an enviable level.
Continue to control your indebtedness as you currently do and know that the situation you find yourself in will allow you to realize your projects in the future.
Make it a habit to check your debt ratio every 12 months to make sure it remains stable. Should you have any questions or need advice with regards to this matter, do not hesitate to contact us, it will be our pleasure to help you see more clearly.
Your ratio is below the critical 40% mark and that is good news. However, be aware that a reduction in income or an increase in your housing costs or debts could make you more at risk.
You should repeat this test in 6 months to ensure that your debt level remains stable or, preferably, that it decreases. Should you have any questions or need advice with regards to your results, do not hesitate to contact us, it will be our pleasure to help you see more clearly.
A debt ratio between 36 and 39%, could be a sign that you are in an at-risk situation. The closer your rate is to 40%, the more likely the lender may require that you have a guarantor or co-signor to guarantee the repayment of a loan or line of credit. If you find yourself in this situation, we suggest you be cautious. This is an indicator that the lender has its doubts with regards to your repayment capacities.
Remember that defaults in payments are rarely intentional. They usually occur following events outside your control.
We strongly recommend that you put in place a plan to, at a minimum, not increase your debt load further and, ideally, reduce it. The lower your debt, the less interest you'll have to pay, which means more money in your pocket. Repeat this test every 6 months to make sure you are on track to reduce your debt level.
Should you have any questions or need advice with regards to your results, do not hesitate to contact us, it will be our pleasure to help you see more clearly.
Careful! Your result indicates a level of debt that exceeds the limits normally allowed by lenders to obtain new loans. The financial institution may require that you have a guarantor or co-signor to guarantee the repayment of a loan or line of credit. If you find yourself in this situation, we recommend caution. This is an indicator that the lender has its doubts with regards to your repayment capacities. Remember that defaults in payments are rarely intentional. They usually occur following events outside your control.
At this stage, we recommend you setup a plan to reduce your debt levels to improve the chances of obtaining a consolidation loan in the future. This would likely result in lower interest costs and allow you to balance your budget.
The first step is to prepare a budget to determine your current debt repayment capacities.
The next step is to make a list of your debts by indicating the balance, monthly payment as well as the interest rate for each account. Then, allocate any budget surplus to repay first the debts with the highest interest rate.
If you do not have a surplus in your current budget, certain non-essential expenses might have to be cut or reduced.
In the absence of a sufficient surplus in your budget to reduce your debts within a reasonable period of time, you may want to visit our "Our Solutions" page or by clicking on the "Book an appointment" or "Question?" button at the top of this page should you require help from a professional or more information.
It's free, confidential and everything can be done in person or remotely. We will be happy to help you.