Debt to Income Ratio Calculator
Staying within your limits will help you from going over the edge
Tell me when to go…and tell me when to stop
Evaluate and elevate your financial health by comparing your monthly debts to your gross income
Maintain a Low Credit Utilization
Aim to keep your credit card balances below 30% of your available credit limits across all cards to demonstrate responsible credit use and maintain a healthy credit score, which indirectly affects your debt-to-income (DTI) ratio by enabling better loan terms.
Limit New Debt
Before taking on new loans or increasing credit card debt, consider the impact on your DTI ratio. Avoid accumulating debt for non-essential expenses to keep your ratio low.
Increase Your Income
Boosting your monthly income can improve your DTI ratio. Look for opportunities for career advancement, take on a side job, or explore passive income streams to raise your earnings.
Regularly Monitor Your Debts
Keep a close watch on your debt levels, regularly reviewing and managing your loans and credit card balances. Awareness and control are key to maintaining a healthy DTI ratio.
Focus on Debt Repayment
Prioritize paying down existing debt, especially high-interest loans and credit cards. Consider strategies like the debt snowball or avalanche methods to efficiently reduce your debt.
Create and Stick to a Budget
Establish a comprehensive budget that accounts for all your income and expenses, including debt repayments. A well-planned budget helps you live within your means, avoid accruing additional debt, and allocate extra funds toward reducing your current debts.