There is also the problem that
higher debt ratios cause credit ratings to be lowered, creating a further rise in interest costs.
Not exact matches
While the
high (and rising) U.S.
debt / GDP
ratio does lead to some concern, there is little convincing evidence that this alone will
cause U.S. yields to rise.
Then the US is has a
higher debt / gdp
ratio than most european countries so it's safe to say that this can't be the sole
cause.
Remember though that too many credit cards or open lines of credit do no show up good on your credit report and can be the
cause of loan rejection due to a
high debt to income
ratio.
(and the gain is not tax free) The real
cause of the increase in
debt - to - income
ratio is the following; 1)
High taxation leaving fewer dollars in the hands of the public 2) Record low interest rates and relaxed lending criteria 3) The wealth affect of increasing Real Estate prices 4) ridiculous credit card interest rates 5) lack of real wage growth
Once you are back in good standing with them wait about a month or two and ask them to increase you credit limit (this will
cause you to have a
higher debt to credit
ratio and shoot your schore up).