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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.