Christian Credit Counseling Service - With Your Financial Freedom in Mind

Am I in Trouble?
Getting Started
Our Purpose

About Us
Contact Us
Privacy Policy

What is...
Budget Counseling
Debt Recovery

Appointment Needs
Debt Ratio Calculator


Call Us Toll Free!

Debt Ratio Calculator
To determine your debt ratio, you need to know:

1. How much do you make?

Gross vs Net income
Gross Income: Total amount of income you bring in anually before deductions. Deductions include things such as Taxes, 401K, Medical Insurance, all Payroll deductions.
Net Income: Income after all deductions. Also known as "take home pay".

2. What are your total outstanding debts?

Secured vs Unsecured debt.
Secured Debt: To calculate debt ratio, we suggest you use "Net Yearly Income" and "Total Unsecured Debt". Take your "Total Unsecured Debt" and divide it by your "Net Yearly Income". This will give you your truest "Debt Ratio".
Unsecured Debt: This means that there is no real property to take back to settle any portion of the debt.

Examples: Personnel loans, Signature loans, Pay Day loans, Credit Cards, Medical bills, Bad checks, Bills that have been "charged off", Lines of credit, Tabs, etc.

Example: If you have $10,000.00 of debt and make $30,000.00 a year Net income, your "Debt Ratio" is .33 or 33% ($10,000.00 divided by $30,000.00). If this number is larger than .36 or 36% then you are probably in need of some kind of financial counseling.

*NOTE* Most banks use your Gross income to figure debt ratio.

*NOTE* Our suggested calculation will be slightly higher BUT you can not spend what is taken from your pay check before you get it.

If you are interested in how we can help lower your monthly payments or just help build a monthly budget, please contact us. One of our Counselors will be able to answer all of your questions and help you on your way to financial freedom.


Christian Credit Counseling Service - A Division of CARES

Copyright 2003

6705 East 81st, Suite 152
Tulsa, OK 74133
Phone: 918-492-5585
Toll Free: 1-800-342-7686
Fax: 918-492-5587