Crisis Assessment

FIND OUT IF YOU'RE IN A FINANCIAL CRISIS

 

Answer the following questions, then calculate your debt-to-income ratio from CNNMoney.com

 

 

CRISIS ASSESSMENT QUESTIONS (17 points = Crisis; )

  1. (10 points) I have been laid off from a job in the last year
  1. (5 points) I have been warned of a pending home foreclosure
  1. (5 points) I have more than $30,000 of consumer debt (credit cards, medical, legal, or back-taxes but not mortgages or car loans)
  1. (1 point) I normally pay only the minimum amount due on my credit card bills.
  1. (1 point) My credit card balances increase each month
  1. (2 points) I have begun using cash advances to meet my obligations.
  1. (2 points) I skip paying my bills some months, or pay late.
  1. (2 points) I have depleted my savings.
  1. (3 points) Collectors have begun contacting me.
  1. (1 point) I have taken money from my retirement account to satisfy debt obligations.

 


CNNMoney.com

 

Take this free debt quiz to calculate your debt-to-income ratio

How deep is your debt? (20% or more = Crisis)

Results / Reference Chart

 

 

The table below shows debt safety zones for various age groups.
If your age is: and your debt-to-income ratio is...
0 to 10% 10 to 15% 15 to 20% 20%+
Under 35 OK OK X !
35 to 55
(one wage earner)		 OK X ! !
35 to 55
(2 wage earners)		 OK OK X !
Over 55 OK X ! !
OK - You're doing fine.    X - Watch it.    ! - You're in trouble. 

Even if the calculator shows that you fall in the "OK" or "Watch it!" zone, you're likely in trouble if two or more of the situations on this checklist apply to you:
      • You're unable to save 10% or more of your gross income because of your debt payments.
      • You hold more than 10 credit cards, including cards issued by gasoline companies and department stores.
      • You habitually make only the minimum monthly payment listed on your credit-card statements.
      • You've borrowed from one lender to pay another.
      • You've had to ask a friend or relative to co-sign a loan because your credit record is weak.
      • You're unable to estimate how much money you owe.

3-Part Financial Seminar on CD or DVD
DA Logo
Debtors Anonymous
 Are You a "Compulsive Debtor?"    Take This Quiz & Find Out

Most compulsive debtors will answer "yes" to at least eight of the following 15 questions.

1. Are your debts making your home life unhappy?

2. Does the pressure of your debts distract you from your daily work?

3. Are your debts affecting your reputation?

4. Do your debts cause you to think less of yourself?

5. Have you ever given false information in order to obtain credit?

6. Have you ever made unrealistic promises to your creditors?

7. Does the pressure of your debts make you careless of the welfare of your family?

8. Do you ever fear that your employer, family or friends will learn the extent of your total indebtedness?

9. When faced with a difficult financial situation, does the prospect of borrowing give you an inordinate feeling of relief?

10. Does the pressure of your debts cause you to have difficulty  sleeping?

11. Has the pressure of your debts ever caused you to consider getting drunk?

12. Have you ever borrowed money without giving adequate consideration to the rate of interest you are required to pay?

13. Do you usually expect a negative response when you are subject to a credit investigation?

14. Have you ever developed a strict regimen for paying off your debts, only to break it under pressure?

15. Do you justify your debts by telling yourself that you are superior to the "other" people, and when you get your "break" you'll be out of debt overnight?

How did you score? If you answered yes to eight or more of these questions, the chances are that you have a problem with compulsive debt, or are well on your way to having one. If this is the case, today can be a turning point in your life.