For Assistance Call: 1-800-501-7526
Are you in over your head?
Calculate your debt-to-income ratio
The amount you owe is relevant only when measured against your income. The more you make, the more debt you can afford to take on. Fill in the blanks to get a rough idea of your debt-to-income ratio—and whether it is already higher than is considered manageable on your income.
Fill in the first four items below, then click on “Calculate A”. Fill in the four income items, then click on “Calculate B”. Finally, click on “Ratio” to find your debt-to-income ratio.
Your debt-to-income ratio — what it means:
36% or less: This is a healthy debt load to carry for most people.
37%-42%: Not bad, but start paring debt now before you get in real trouble.
43%-49%: Financial difficulties are probably imminent unless you take immediate action.
50% or more: Get professional help to aggressively reduce debt.
For Assistance Call: 1-800-501-7526
Source: Gerri Detweiler, author of The Ultimate Credit Handbook
