Your debt to income (DTI) ratio is all your monthly debt payments divided by your gross monthly income. Lenders use the DTI ratio, along with credit history, to determine how well a borrower manages his/her monthly payments and whether has the ability to repay a loan. Each lender has their own debt-to- income ratio approval guidelines, with mortgage lenders having lower, more restrictive DTI limits than a personal loan lender.…
If you are new consumer, a clear understanding of “revolving credit” vs “installment credit” will help you manage your credit accounts, debt obligations and credit profile. Read more…
A Tax Debt Installment Agreement is a debt relief program that allows taxpayers to pay off their Internal Revenue Service tax debt over time. The Installment Agreement permits a taxpayer to pay off his/her tax balance over time, but with stringent qualification and payment requirements. However, because interest and penalties will apply, the IRS encourages taxpayers to pay taxes immediately as interest and penalties can equal 8% to 10% per…