Q: What is a debt to income ratio, also known as a DTI or DIR?
A: Your personal DTI reflects how much of your monthly income is allocated to regular monthly expenses.

Q: How do I calculate my DTI?
A: Simply divide your total monthly expenses by your monthly net income.
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Q: Why is my debt to income ratio important?
A: Any time you apply for a loan or any form of credit, your DTI will be considered by the lender. Also, if your DTI is close to or over 100% that means that you will have a hard time just meeting your basic monthly obligations.

Q: How can I improve my DTI?
A: Unless you are expecting a significant increase in monthly income, the best way to improve your DTI is to payoff any outstanding unsecured debts on your credit.
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