Many cases must be considered when applying for a loan, regardless of form, including credit cards, and personal loans. Some cases must be considered, for example, how much interest rates, annual fees, and how many installments to be paid a month. See also the agreement that has been agreed if there is an impression that must be accounted for if you are unable to pay the installments in a timely manner. Usually this has to do with the assets / assets that you make as collateral. Do not miss, of course you have to consider the debt and income ratio before applying for a loan.
Debt and Income Ratio (Debt to Income Ratio)
The definition of cagaran and income / debt to income ratio is a ratio that can see whether the monthly debt installment payment is in accordance with the amount of debt income that he will get. Usually this will affect the debtor (for example a bank) to see if you are worthy of a loan or not.
Submission of a loan, as well as a credit card or personal loan, it is usually possible to fulfill it if the prospective debtor has a fairly good debt to income ratio. This analysis is used as one of the foundation by the bank, because the bank will assume that you are quite responsible if you have a fairly good ratio.
Not only at the time of submission, debt and income ratios can also be estimated when you have got a loan. Basically, it is mandatory to have a debt that is lower than a month’s income, especially if the debt is consumptive.
Following is the formula for debt ratio and income:
How to Read the Debt and Income Ratio Score
After knowing the formula for debt ratio, the next step is to find out how to interpret it. Here is a guide to how to read it.
≤ 35% – Ideal / in accordance with income
The debt ratio in this figure means that your financial flows are ideal, and allow you to pay debts on a regular basis, without fear of being in arrears. By always being consistent and maintaining debt and income ratios at this number, and paying regular installments can also give an impression on your credit score on CCRIS and CTOS, which will be good and free of negative credit listings. Even with good debt and income ratios, you also have to keep your expenses safer and far from wasteful, so you can pay installments regularly.
36% to 49% – Less Ideal But Still Can Be Repaired
For this number, actually the ratio that you have is still quite good and can still be fixed, just not as ideal as the percent below. You still have the opportunity to deal with expenses that have not been guarded. Do not allow the debt ratio to your income to exceed 40%. So with that, if you are unable to maintain a ratio to stay consistent or lower the debt to income ratio, chances are that you can experience a crisis and no longer have the ability to pay off debts in the future.
≥ 50% – Not ideal
Understanding the debt ratio in this number is the existence of an imbalance between monthly income and the installments you pay each month. Usually if you have arrived at this number, you will no longer have the ability to pay installments, which will cause delinquent installments. If you have reached this number, there is better if you ask for help from a more experienced consultant to help you in reducing the contribution, and to increase income.
Let’s try applying it in an example case. For example, Budi’s monthly income is IDR 10,000,000, then Budi has an installment of several credit cards of IDR 5,000,000, then the debt ratio and Budi’s income is 50%.
Based on the guidelines for reading the debt and income ratios above, we can find out that the debt ratio is not healthy, because it hits 50%. Then how to overcome this? Shrubs in the next sub category.
How to Lower the Percentage of Debt Ratio to Revenue
In the example above, Budi has a debt ratio of 50%. Then what should be done if it has continued to experience a debt ratio in this number, and how to lower the percentage of the debt ratio? There are a number of things you can do:
The key to minimizing the debt ratio is found in both aspects of the estimate: monthly income and total installments. Let’s start with monthly income, the step you can do is to increase monthly income. If you currently have limited income, there are several ways you can do it.
The first way, if you are a worker, try to ask for a raise . Focus on the achievements that you have contributed to the company and make it as capital to negotiate a new nominal salary. Remember to always sell the quality of yourself, and avoid begging to the company, what more is the reason for having a lot of debt.
Second, you can also defeat him by looking for a side job. There are many opportunities that you can take advantage of, for example, being an article writer, language translator, even being a guide for online texting.
Third, look at the opportunities that exist. If possible, try to start trading from home. If you have a problem, you may ask for help from a partner or family. You can also take advantage of assets such as the train you have, or even use an empty land / room at home and process it to become an additional money producer.
Subtracting Debt Nominal
Before declaring the same as there may or may not reduce the nominal debt, one thing to remember is not to add new debts, including shopping with credit cards. This will only burden you and make you more difficult to pay off your debt and achieve a good debt ratio.
Speaking more about reducing debt, the answer is allowed, depending on the type of debt you have. If you now have a problem with credit card debt or personal loans that are in arrears and somewhat burdensome, it’s good to ask for help from consultants who are more professional in dealing with them. With this, you can be easier in paying off debt, and the amount of monthly income will not continue to be burdened with the amount of debt that must be repaid. There is usually a debt management program provided to help your problem:
- One-Piece Discounts / Discounts: This type of relief program allows customers to get a nominal discount which is usually quite light, usually 20-50%, and must be paid in one payment. This type is suitable for those of you who do not have sufficient savings, who may decide to pay arrears.
- Low Interest Rate Ansuran: Usually with this program customers can pay a lower interest rate. If the normal interest goes when it is around 2.25%, then it is possible to get an interest of 0-2% only, with a period of 60 months installments (in certain cases). The goodness of this program is that you can pay little by little without having to pick up your savings.
- Disclaimer Ansuran: For the discount review program, usually you can benefit from the two types of programs above. But because it is combined, of course you cannot pay installments throughout the installment program, usually as much as 6 payments. Likewise for discounts, you do not get a discount for the same one-time discount program. This type of program can only be found in some banks.
One of the debt management program providers that you can use to overcome the problem of insolvent credit is Edmond Dante.
Edmond Dantès international is the first professional technology based company in Indonesia, which provides a debt management program. This program is designed so that customers who are in debt, have the ability to control their financial returns. Edmond Dantès Indonesia helps clients through a debt management program, specifically designed according to different requirements for each client. This program is a combination of upbringing on various opportunities to increase income and reduce expenses, and conduct negotiations on bank loan conditions that exist to reach the amount of payment that is in accordance with the ability. Edmond Dantès indonesia’s central official was established in Jakarta in 2015 by a founding team that has collective experience in the financial sector including debt settlement for more than two decades. Edmond Dantès made Indonesia as a center of operations once a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, Edmond Dantès Indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators (IAPDA).