Posted in Debt management

Debt-to-income ratio

When your debt-to-income ratio is too high, it is difficult not only to pay your bills, but also to get loans of most kinds. Your debt-to-income ratio is when you add up all the debts you need to pay this month in comparison to the income you have. My debt-to-income ratio is about 150%, which means I owe more monthly than what I make.

How do you lower this? You could lower your debts or increase your income. Or a little of both.

Sounds easier said than done? Yes! And that’s one if my struggles with this debt management. In my head, everything would be easier if I could just be able to pay everything and start from square one. But, this would be a miracle!

I’m not sure you know this, but God does miracles! Nothing is impossible with God. I do pray about this multiple times a day. Maybe I’m praying the wrong thing or maybe it’s just not my time yet. Regardless of the reason I’m in over my head in debt is because of the poor choices I’ve made through the years. The lesson I need to learn is how to more effectively manage the money God gives me and steward the money well.

It is encouraged to sell your stuff and get a second job in order to decrease that debt-to-income ratio. I haven’t sold a thing. I don’t have a second job, per say. And my current job as a defense contractor pays about half of what I could make in the civilian sector, so I’m actively looking for a new job that actually pays what I’m worth, or closer to it.

However, I do freelance write and it makes pennies right now, but with consistency, it has potential. Just yesterday, an article I wrote had over 200 views. This is good! For starters, I’m learning that writing about the amazing things happening in and around Hawaii, the hot topics, are what brings in views. Not necessarily the news, but the events people really want information on. So it’s a start to a good additional income that I pray will soon become a car payment!

Best of luck bringing your debt-to-income ratio down as I try to work on mine as well. I’m sure this topic will come up again in the future!



Daughter, sister, mother, wife. Most of all, follower of Jesus Christ. Avid reader and amateur book review blogger; WAHM-to-be.

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