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Activity: Debt Risk Assessment

Wooden blocks with the word Risk and a down arrow

This activity guides you to assess your current debt risk. Going through this process can help you identify areas in your budget where you need to make changes to improve your overall financial health. When you make the effort to calculate your Debt Service Ratio, you should be better able to identify those areas where you need to make modifications and improvements to your budget. Staying on top of your ratios and working to improve them gradually over time can assist you to move closer to your long-term financial goals. Prioritize creation and implementation of a budgeting plan to address the highest risk, highest interest rate debt first.

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