Calculators

Calculate Your Debt-to-Income Ratio

It is important to understand your debt-to-income ratio, as this is an important function of your credit and a tool that lenders use to evaluate your eligibility for credit and interest rates. This ratio will tell you how your monthly income compares to your monthly debt obligations. If your ratio is too high, this may indicate that your monthly expenses are becoming unmanageable. It may impede your ability to gain future credit and subject you to higher interest rates.

Enter your information below to calculate you score.

Monthly mortgage(including taxes and insurance) or rent: $
Home equity loan payment: $
Minimum monthly credit card/medical bill payments: $
Monthly car loan/lease obligation(s) $
Personal Loan payments: $
Student Loan payments: $
Monthly Alimony or Child support payment: $
Other loan obligations or monthly payments: $
Monthly Debt Payments:

Your monthly income before taxes: $
Monthly Bonuses and overtime: $
Other Monthly Income: $
Monthly Alimony or child support received: $
Monthly Income

Debt-to-Income Ratio

Interpret Your Results:

34% or below: This is a healthy debt load for most people to carry

35 - 39%: Not bad, but you may want to address your debt load before you get into real trouble

40% - 49%: Financial problems are probably looming unless you take immediate action.

50% and greater: Get professional help to reduce or eliminate debt.

How can we help?

Depending on your debt position and income, we can help to eliminate or consolidate debt to bring your debt-to-income ratio back in line. The Chapter 7 will simply eliminate unsecured debts (Credit card bills, medical bills, personal loans, etc.) and therefore bring your debt-to-income ratio down immediately. This will begin to have a positive effect on your credit and may allow you to qualify for additional credit (i.e. home re-finance or loan modification, car loan, etc.) that you would not have otherwise been able to obtain.

A Chapter 13 is a debt consolidation program that focuses on paying down principal debt each month. As each month of the program continues, you will be reducing principal debt and improving your debt-to-income ratio. At the end of the program, whatever balances remain on unsecured debts are eliminated. This will ultimately improve your debt-to-income ratio as well, putting you in a better position to obtain and manage new credit.

We offer free consultations to discuss your finances and options to improve credit positions.

We offer free in-office and phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. Please call us toll free at 866-261-8282 or click here to schedule a consultation right now.