What is your “debt to income” ratio? Why does it matter? How can you personally use it to get approved for loans and improve your credit?
As mentioned in the video…here’s the math:
To determine your DTI ratio, simply take your total debt payments and divide it by your income (before taxes). For instance, if your debt costs $2,000 per month and your monthly income equals $6,000, your DTI is $2,000 ÷ $6,000, or 33 percent.