Debt is a double-edged sword. If debts are managed well, they will improve our lives and help us accomplish our goals, for instance obtaining an education, purchasing a home or expanding our businesses. If they aren’t, they will invite problems into our lives.

So, how do you know if your debt is kept at a healthy level? Let’s take a look at the debt-to-income ratio (DTI):

Here are some tips for managing your money effectively to avoid debt:

START PLANNING
– Make a budget and stick to it
– Set realistic financial goals

STAY DISCIPLINED
– Continue repaying the debt
– Track your spending
– Pay off your credit card bill on time every month
– Be a smart buyer and avoid impulsive purchases

START SAVING / INVESTING
– Save to purchase something you really need
– Invest every month to achieve your financial goals

This material is prepared solely for educational and awareness purposes, and should not be construed as an offer or a solicitation of an offer to purchase or subscribe to products offered by Public Mutual. No representation or warranty is made by Public Mutual, nor is there acceptance of any responsibility or liability as to the accuracy, completeness or correctness of the information contained herein.