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Gen Xers have fallen a little behind when it comes to the generation that’s slowest-moving within the real estate market.

One of this generation’s two biggest hurdles is low credit standing and high debt-to-income ratios, according to a report by the National Association of Realtors. A group of about 6,000 homebuyers participated in the survey.

On average, lenders rejected about 7 percent of the applications submitted by Gen Xers, which was plus two percentage points compared to other generations.

History may be a factor in this unevenness. A large number of unsuccessful applicants can trace some complications back to the market’s condition at the time of selling their previous home.

By taking just a few steps forward, you can begin to rebuild your credit and regain your financial freedom. Here are some effective techniques to tackle your debt-to-income ratio, which you can begin to implement today.

Paying credit bills month to month, and on time, is always ideal. Even one late payment can lower your score substantially. To have a larger impact, however, it’s a good idea to pay early and make room in your budget for extra payments.

This is a great strategy that is compatible with other techniques, including the avalanche approach. When you target your debt this way, accounts with the highest rate come first and those with lower rates are paid off less aggressively.

By allocating extra money for credit bills, you can take the snowball approach, as well. This makes the smallest debt a priority.

Another effective way to chip away at debt is to base your plan on the bill-to-balance ratio. This strategy targets debts that most efficiently reduce the debt-to-income ratio for the least amount of cash paid.

For instance, cardholders will want to be more aggressive on payments that cost less but have a larger impact in terms of how much it lowers the overall balance amount.

If you have any questions about these strategies or purchasing a home in the Roseville area, don’t hesitate to contact us.

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