Methods to lower DTI: If a person has higher debt to income ratio he will certainly like to reduce it to the level desired by lending agencies, so that he may avail new loan or advance when he is in real and urgent need. Following are a few measures which one may take to achieve it.
- Don’t take any more loans and avoid purchasing much from your credit card. This will reduce your debt to income ratio.
- Try to increase your monthly amount, which you are paying towards your loans. The extra amount thus paid will lower your overall debts quickly.
- Large purchases may be postponed for future, and money saved thus may be utilized to make larger down payments. By postponing large purchases and by making fewer purchases you will be able to reduce your monthly burden of repayments and by doing this you will lower your debt to income ratio.
- Keep a close watch on your debt to income ratio by calculating it every month. Watch the downward progress of your debt to income ratio, and get inspired by its movement.
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