05/16/2025
Do you know how I calculate how much you can afford? Its super simple actually. Its called debt servicing. I take your gross (before tax) income and divide it by your debt
So now that you know how that works, you can see that increasing your Pre-approval is done by increasing your income or decreasing your debt.
Making more money isnāt always easy, but it could mean getting a raise, or switching to a better-paying job
If you come into some extra cashālike a bonus or tax refundāthink about using it to pay down your debt instead of spending it. The less debt you have, the better your ratio looks.
Here are a few easy ways to start:
Try not to make new purchases, especially on credit cards.
Make a budget and look for places to cut back. Use the savings to chip away at your debt.
Call your credit card company and ask if they can lower your interest rate. It never hurts to ask.
Got money just sitting in a low-interest savings account? It might make more sense to use it toward debt thatās costing you more in interest.
If you own your home, talk to me about using your equity to pay off high-interest debt.
Little steps add upāand the less debt you're carrying, the more financially flexible you become.
Money is a tool, use wisely š
Juliana
