A debt to income ratio or DTI is a percentage that is shows how much of your monthly income goes towards paying your debts.

Knowing your DTI is important for several reasons. Your debt to income ratio gives you a good idea of your financial standing and lenders also look at your DTI when approviing you for loans.

For a short DTI (use short form at side), your monthly income will be compared with your monthly unsecured debt payments (credit cards, medical bills, personal loans, etc.).

If your Debt to Income ratio is under 15%, you should continue to pay down your debt and re-calculate your DTI regularly to check your progress.

If your DTI is between 15% and 20%, you are at an important point. You need to get help with your budget and/or reduce your debt before things get out of control.

If your DTI is over 20%, you need to get help today! Contact us to discuss options that can save you hundreds of dollars per month while reducing your debt.

For a full DTI (use long form at side), your monthly income will be compared to all your montly bills including both debts and other monthly expenses such as mortgage or rent, utilities, car payments, etc.