Debt can be scary. Whether it’s student loans, medical bills, personal loans, or credit card debt, many people have debt in some form. Getting an overview of your debt-to-income ratio can help you better assess your own financial situation. Luckily, you don’t have to be a math whiz or financial advisor to figure this out – online calculators can do the job.
Such calculators are useful tools for looking at certain aspects of your finances. However, if you have any questions or need individual financial advice, it is advisable to consult a professional.
NerdWallet, a financial services company, offers a free debt calculator to help determine if your debts are getting out of hand. This calculator ignores “good” debt like student loans or mortgages and instead focuses on “bad” debt like high-interest credit card debt or some personal loans.
The higher the percentage of your debt, the bigger the problem. According to NerdWallet, debt ratios above 36% can be harder to pay off. Depending on the ratio determined, the website provides popular suggestions for debt reduction.
There is no one-size-fits-all solution to paying off debt. Fortunately, there are many different approaches that can help you manage debt in a way that best suits your life and wallet.
If you don’t know where to start, you might be interested in methods like Debt Avalanche or Snowball. Online calculators for both methods and more can explain everything to you in detail and help you find a suitable plan of action – including all mathematical calculations!
Sometimes the best approach might be an unconventional one, such as considering whether your spouse should work.
A “Should My Spouse Work?” calculator evaluates the financial impact of adding or removing income and compares that to expenses like child care and transportation.
All of these calculators are intended as a guide, so the suggested values should be adjusted as necessary.