Cashtoons

Debt-Income Ratio 2

May 14, 2022

The next debt-to-income ratio is for all your consumer debt. This means any balance that you carry on a credit card,

credit card

An car payments,

car

Any monthly debt payments that are not for your housing. So boats,

boat

You name it! All your consumer debt paid monthly dvided by your monthly income should be below 15%. Lower is even better! Okay, next week we will cover the back-end ratio.

Sources:

sources

Financial Counseling by Dorothy B. Durband, Ryan H. Law, and Angela K. Mazzolini


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