What is it?
Debt load is a term that is used to describe the amount of debt a consumer has. Creditors look at the Debt/Income ratio to see if consumers are carrying a "safe"amount of debt.
How do I Calculate it?
Add all of your non-housing monthly payments except for utilites and taxes. Then, Calculate your total annual gross wages and divide by 12. When you divide your monthly debt payments by your monthly gross income. You will get your monthly non-housing Debt/Income ratio; it is generally expressed as a percentage.
What does it Mean?
10% or less: You're in great financial shape
10%-20%: You will probably be able to get credit
20% or more: Too High !
Take the Debt Load Quiz
Sunday, March 15, 2009
Debt Load
Posted by Paris Girl at 7:46 a.m.
Labels: Source: Practical Money Skills
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1 comments:
Good dispatch and this post helped me alot in my college assignement. Thank you as your information.
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