Total Debt Servicing Ratio (TDSR)

The total debt-servicing ratio (TDSR) is used by most financial institutions (creditors) to determine if a client should qualify for new credit. Most likely you wonder how it is calculated and how you can demonstrate your credit worthiness to a bank during the application process.

The first thing you need to do is calculate your monthly income as a household. Banks are always looking at a gross numbers for income. In the case of business owners or self-employed individuals they have the ability to 'back-out' business expenses from their gross income prior to listing it (things like cell phone charges, advertising costs, office space rental, etc.)

The second step is to calculate your monthly expenses as the financial institution will see them. Only certain expenses qualify for the calculation including Rent/Mortgage payments, heating bills, debt payments (according to their calculations), Vehicle expenses, and spousal or child support payments.

Once you have calculated the above numbers it's a matter of comparing them - details can be found on the Calculating your TDSR page.

In general the lower your TDSR the better chance you have at qualifying for new credit. In most cases reducing your outstanding debts will allow you to access more financing. If you are in a position now to put a lump-sum down on your accounts to increase your TDSR and credit worthiness please Contact Us to discuss strategies to make your lump-sum payment go further towards reducing your debt levels.

next step: Calculating your Income

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Canada Debt Settlements stands by the commitment and service guarantee that no client will be charged unless we can achieve a debt reduction. As our customer testimonials will demonstrate - we have a unique solution that allows a licensed agency to advocate with your creditors on your behalf. We work for YOU... not the creditor. Call now to speak with an experienced and licensed debt professional. What do you have to lose?

Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

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