Pregnancy and having children . Expenses for children are not included in the formula for calculating the DTI, but lenders take them into account. If you do not have children, it is easier to get a loan with a moderate and high DTI.
Owning your own home . If the borrower lives in their own apartment, they don't have to spend money on rent. This increases the chances of the application being approved.
Stability of employment . Constantly changing jobs and areas of activity reduces the likelihood of a positive decision.
Credit history . Borrowers who do not allow late payments find it easier to get a loan with a high DTI.
It is worth reducing the debt burden so that banks can approve cambodia mobile database applications and offer favorable terms. In addition, reducing spending on loans generally improves the quality of life. We will tell you about four ways to reduce the DTI.
Early repayment
By law, every borrower can repay the loan early at any time - in full or in part. Even partial repayment of the loan with a reduction in payment reduces the debt burden.
To reduce the DTI, try to close all small loans. To do this, you can temporarily reduce expenses, take on a part-time job, or sell unnecessary things.
If there are no small loans, start making larger payments on one of the loans. In this case, you can reduce the loan term or the payment amount. In the first case, the amount of overpayments will decrease, in the second - the debt burden.
Refinancing
If you don't have money for early repayment, use refinancing. This service allows you to combine several loans into one and significantly reduce your debt burden.
To refinance, you need to contact another bank. It is interested in getting a reliable borrower, and therefore will offer more favorable conditions than under the original agreement. By reducing the rate and increasing the term, you can significantly reduce the amount of monthly payments.
Before applying, carefully study the conditions offered by different banks. Pay attention to the following details:
The period from which loans are accepted for refinancing. Usually, lenders require that at least 6 months have passed since the loan was issued.
Possibility to refinance credit cards. Some banks accept only consumer loans for refinancing.
No delinquency requirement. As a rule, it is not possible to refinance products that have been delinquent for the last 6 months.
Restructuring
If you have difficulty making loan payments, you should notify the lender before the first delay occurs. The bank may offer debt restructuring - for example, extending the term and thereby reducing the amount of payments.