Video: What is your Debt To Income ratio and why should you care? [4:50]

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.

Author: Man Vs Cash

Adrian Hall is a money expert, opinion piece writer, podcast host, and career finance guy who paid off $50,000 in 18 months by rethinking everything he knew about money. When he is not obsessing over his financial goals, he can be found biking, working on his car, or spending time with his husband and dog.