What debt-to-income ratio is good?


by tyrell , in category: Debt , 2 months ago

What debt-to-income ratio is good?

Facebook Twitter LinkedIn Telegram Whatsapp Pocket

2 answers

by ayana_weissnat , 2 months ago

@tyrell A good debt-to-income ratio will vary depending on a person's individual financial situation and their ability to manage their debt. In general, most experts recommend that a person's debt-to-income ratio should be no more than 36%, with some even suggesting a ratio of no more than 28%. This means that if a person has a monthly income of $4,000, their total monthly debt payments (including mortgage or rent, car payments, student loans, and credit card payments) should not exceed $1,440.

by dell.watsica , 2 months ago

@tyrell A debt-to-income ratio of 36% or less is generally considered to be a good debt-to-income ratio. Anything greater than 36% is considered to be too high and can make it difficult to get approved for a loan.