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Debt to Income

The Debt to Income Ratio is one of the most important factors when determining your credit worthiness. The Ratio is equated by dividing total recurring monthly expenses from gross monthly income.

Debt to Income Ratio

Debt to Income - Total recurring monthly debt obligations divided by total gross monthly income.

Formula: Divide your gross monthly income by all monthly debt obligations (mortgage payments, home equity line of credit or 2nd mortgage payments, student loans, car loans and monthly minimum on any credit card payments).

Example:  Consumer #1



Annual Income = $84,000

Monthly Income = $7,000


Mortgage - $1,500 per month

Car payments - $500 per month

Student Loans - $250 per month

Credit Card Payments - $750 per month

Total Monthly Expenditures: $3,000

Then we divide total monthly debt payments by total monthly income; So $3,000 / $7,000.

In this scenario, Consumer #1 has a DTI of 42.85%.

So Approximately 43% of their monthly income is going towards required debt obligations (not including food, insurance, taxes, etc.) 

Debt to Income Calculator from Bankrate.

Lenders evaluate your DTI when deciding whether to extend a line of credit to you. Typically, a low debt-to-income ratio displays to lenders that you have enough income to cover your debt obligations. The lower your DTI is, the more likely you will receive favorable terms on any credit you are applying for. 

Your debt-to-income ratio is a very essential part in determining your credit worthiness. Many consumers are unaware of the fact that, even if you have an outstanding credit score, if your Debt to Income Ratio (or DTI) is not favorable you will not qualify for many loan products/services. The reasoning for this is simple. An individual's DTI is essentially a balance sheet for their financial health and if your balance sheet shows that you have no leeway for unexpected costs, many lenders will view you as an unfavorable credit risk. 

For many consumers that do not have great credit or a good debt to income ratio, a debt relief program may be a good financial solution to help them save money and become debt free.

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99 Wall Street #725, New York, NY 10005, United States

(888) 344-0214

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Please note that all calls may be recorded for quality and training purposes*

The Debt Relief Company is not a lender and does not assume the responsibility of a consumer's debt obligations. Clients that enroll in the debt relief program with The Debt Relief Company and make all monthly payments in a timely fashion pay approximately 65%-70% of the enrolled debt amount (including all fees and associated costs). These figures are based on conservative estimates and The Debt Relief Company's servicing fee of 20% of the enrolled debt amount. Available program terms range from 12-48 months. Not all clients who enroll with The Debt Relief Company will complete The DRC program. The Debt Relief Company cannot guarantee percentage reductions for our debt resolution services and the timeframe in which they are achieved. The Debt Relief Company does not provide clients with legal, tax, bankruptcy, accounting or investment advice. The use of our debt relief services and your participation in the debt relief program will likely affect your credit worthiness. We do our best to provide clients with realistic and conservative financial goals, however if you miss program payments it will likely impact your ability to become debt free and pay off your credit card accounts within the estimated timeframe.

The Debt Relief Company Program is not available in all states across the United States and some debt accounts are not eligible to be included in The DRC program.

Hours of Operation: Monday - Thursday: 9:00am - 8:00pm EST, Friday: 9:00am - 6:00pm EST

Co-founded by Dino Selita & Adem Selita

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