Download Debt Management Letter - Impact Technologies Group, Inc.

Return Address
In this location
January 1, 2005
Name of Prospect
Address of Prospect
Hometown, State Zip code
Dear Mr. and Mrs. Prospect,
Is your debt managing your finances, or are you managing your debt?
Interest enhances your net worth when it’s working for you. Compound interest is a key element in
building your wealth. However, when interest is working against you, it can prevent your successful
accumulation of wealth. Debt management is an essential aspect of any financial plan. Dollars not used
for interest payments on debts can be saved and used to grow your wealth. The rewards for better debt
management can easily double.
One of the first analyses for debt management is
to consider the debt-to-earned income ratio –
what portion of your work goes toward debt? The
sample to the right illustrates a portion of the
analysis I can provide you.
The lower your debt-to-earned income ratio, the
better your financial flexibility will become. A
debt-to-earned income ratio of 20% or below is
considered average. Depending on your
particular circumstances, a ratio of 20% or higher
may be a sign that your credit is out of control.
Debt can help or hinder your financial success.
I will be calling you in a few days so that we can
arrange to prepare a debt management analysis
just for you.
Sincerely,
Advisor’s Name
P.S. What portion of your earnings goes to debt? The best way to get debt under control is
starting with a detailed analysis.
81925015
© 2005 Impact Technologies Group, Inc.