We all know it's not healthy to be in debt. But when you've got fertility or adoption costs, a home to set up, a safe car to invest in, loans to pay off, and childcare to save or pay for, raising a child on one paycheck can be incredibly daunting. One friend of Choice Moms at numerous workshops has been Ameriprise, which offers this advice on debt.
Posted June 30, 2010 at 7:50 AM
Ameriprise: 5 tips on managing debt
submitted by our friends at Ameriprise
The prevailing wisdom is that no more than 28% of your monthly gross income should go to your mortgage, and your debt should be no more than 36% of monthly gross income. Track your cash flow for one month and see how much goes to fixed bills, other committed expenses, and discretionary spending.
To reduce your spending and debt: 1) identify where your hardest hits come from, 2) get lower rate debt with your loans and credit cards (consider whether a home equity line of credit would be useful), 3) pay off your high-rate debt first, 4) borrow only for long-term needs, 5) read these articles for more details:
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