Download Total Debt - Extraco Banks

Total Debt
Worksheet
Use the TOTAL DEBT WORKSHEET to determine the amount of debt you currently owe in order to assess
how well you are managing it. It can also be used to indicated how well equipped you are to handle
additional debt.
The amount of debt you owe is just as important as the income you earn. It can prevent you from achieving
your goals as well as restrict you from being able to obtain financing in the future. For many of us, debt
reduction is one of the most important financial goals in our lives and helps us move towards other, longterm saving goals.
Type of Debt
ex: Mortgage, auto,
credit card, etc.
Outstanding Balance
ex: $8,254.00
Monthly Payments
ex: $245.00
Interest Rate %
ex: 6.25%
Mortgage
$ 62,000.00
$ 1,028.00
3.2%
Credit Card
$ 8,000.00
$ 128.00
16.2%
Auto Loan
$ 13,288.00
$ 362.00
1.9%
Student Loan
$ 32,000.00
$ 150.00
6.8%
Total monthly payments =
$ 1,668.00
x 12 months =
Annual debt payments =
Extraco Banks is a Member FDIC.
$ 20,016.00
Debt Capacity
Worksheet
DEBT CAPACITY is your ability to handle debt and is largely dependent on the amount of debt you already
have and can greatly affect your ability to afford debt in the future.
The measure of your debt capacity is known as your TOTAL DEBT SERVICE (TDS) ratio which is
used when considering a loan application for approval. As a general guide, having a TDS that is less
than 40% is favorable.
If you find your ratio is above 40%, you should concentrate on finding ways to reduce your present level
of debt. Taking the time to map out your monthly expenses can help you identify areas which may be
able to save you money.
Debt Capacity
Total Annual Debt Payments
Annual property taxes (if applicable)
Annual rent payment (if applicable)
Annual housing association dues (if applicable)
Annual utility costs
Annual lease payments (if applicable)
Annual health/dental insurance payment or costs
Annual Daycare costs or College Planning costs
Annual child support payments / alimony payments
Total Annual Debt
Annual Gross Family Income
(Total personal income before taxes or deductions)
Total Debt Service Ratio
(Annual Debt / Annual Income) x 100 =
Monthly Payments
$ 20,016.00
$ 4,100.00
$ 0.00
$ 0.00
$ 2,100.00
$ 0.00
$ 7,200.00
$ 2,400.00
$ 0.00
$ 35,816.00
$ 92,000.00
39%
Extraco Banks is a Member FDIC.