Excerpts from Broke on PaydayTM 
By: Mandi-Delight Greenidge
A Note from the Author...
Being in debt is tough. You worry, you cry, you can’t sleep, you don't answer the phone, you screen your calls, you don’t open your mail, you look to see who's at the door before you open it. Right?
For how much longer can you continue living your life this way?
More and more people are discovering the reality of debt, getting in is a lot easier than getting out. To beat the debt trap you first have to fight the spending habits that got you into trouble in the first place. Then you have to figure out how to repay what you already owe, using what you have.
And here comes the kicker. You must do this all the while the interest meter is running!
The Debt Trap...
You are in debt right now because of two reasons:
1. The really important things such as your mortgage and line of credit and
2. The things you could have done without such as store credit cards and store purchases financed by high interest companies like Wells Fargo Financial, Citi Financial and HSBC.
If you are willing, we will take you from the low point of where you are presently, to a new high of financial ability, no matter the amount you make or your present credit score. If nothing else sticks with you during the process the fundamental key I want you to remember is this. IT DOES NOT MATTER WHAT YOU MAKE, WHAT MATTERS IS WHAT YOU SPEND!
To know the difference, calculate your debt to income ratio.
Add up your total net monthly income. This includes your monthly wages and any overtime, commissions or bonuses that are guaranteed; plus alimony or child support payment received, if applicable. If your income varies, figure the monthly average for the past two years. Include any monies earned from rentals or a small home based business.
Add up your monthly debt obligations. This includes all of your credit card bills, loans, auto leases or loans, insurance, daycare, utilities, cell phone, cable and mortgage or rent payments.
Divide your total monthly debt obligations by your total monthly income. For example if your total monthly income is $3000 and your total debt payments $1700 your debt ratio is 57%. Formally called your total debt-to-income ratio.
Take action if your ratio is higher than 36%. Your debt to income ratio has a direct corelation to your credit score and your ability to pay your monthly bills. The lower the better.
