Easily Calculate Your Debt to Income Ratio

Understanding Your Debt to Income Ratio

Now that you have calculated your debt-to-income ratio, understanding what it means to you is the next step.

36% or less

This is an ideal debt load to carry for most people. Showing that you can control your spending in relation to your income is what lenders are looking for when evaluating if you are credit-worthy.

37% to 42%

Your debts still may seem manageable, but start paying them down before they begin to spiral out of control. At this level, credit cards still may be easy to obtain, but acquiring loans may be more difficult.

43% to 49%

Your debt ratio is high and financial difficulties may be looming unless you take immediate action.

50% or more

Seek professional help to make plans to drastically reduce your debt before it becomes a real problem.

Take the next step

Once you have determined your debt-to-income ratio, if the result is less than If your debt-to-income ratio isn’t where you’d like it to be, we’re here to help. Call us at 800.405.6035 to connect with a funding specialist and see how invoice factoring can help improve your financial position.