What
is a Debt to Income Ratio?
A debt to income ratio shows how much of your
income is used up paying off your debt. The ratio is displayed as a percentage
and the lower the percentage the better.
A debt to income ratio of 10% means that you
spend just 10% of your income paying off your debts and have the remaining 90%
to spend as you wish. If you have a debt to income ratio of 80%, then this
means that you only have 20% of your income freed up every month.
