Debt burdened conditions in life often compel you to communicate with your creditors which might not be pleasant at times and this happens especially when you approach them without doing proper homework. Your homework here means a thorough evaluation of your current financial position. While dealing with debts you have to be very cautious and aware of every minute detail. After all ,every dollar counts.

Before contacting your creditors we recommend you to check your financial position based on certain factors discussed below. Our calculator will keep you updated on all your debt aspects.

• Total debt amount: You need to have a sound knowledge of the total debt amount you owe to your creditors and the purpose behind the debt. If there is any doubt about the debt amounts check out your credit report immediately to confirm it. Along with your debt amount you must also be aware of your creditor's profile and your time limit for the payment scheme with the creditor.
  

• Debt income ratio: Debt to income ratio (DTI) provides the basic indicator of your financial health. It is an analysis which compares the amount you owe with the amount you earn. By using debt income ratio to manage your budget, you can get out of debts and also minimize the damage to your credit. You can also determine whether debt consolidation programs will be helpful to you or doing it yourself will be a better option.
  

• How much you can pay per month: This aspect demands very serious and rational analyzing from your part. Evaluate your monthly income and also your basic monthly necessities. Scrutinize your financial position very carefully before committing your monthly payment amount to your creditor. It is advisable to be rational and not over optimistic as it may lead to serious problems. For example, you are paying $250 to a creditor every month. After a certain period if you fail to continue with your payment scheme, there might be no other options left to you other than bankruptcy. The money you invested so far will bear no consequence in settling your debts.


• APR Calculator: APR (Annual Percentage Rate) is the equivalent interest rate considering all the added cost to a given loan. With our APR calculator learn more about your reduced interest rates in the debt repayment plan.
  

Practicing the above discussed guidelines will always give you a strong platform during negotiating with your creditors. We help you to have a clear picture of your debts before you start negotiating and plan your repayment scheme.

Hope we succeed in helping you in regard to :

• Calculating your total debt.
• Calculating your Debt income ratio.
• Finalizing on your monthly amount in the debt recovery plan.
• Calculating your APR.