Debt-to-Income Ratio (DTI)
A measure of how much of an individual's monthly income is consumed by debt payments.
More Details
A debt-to-income (DTI) ratio is a financial metric used to assess the financial health of an individual or household. It is calculated by dividing the total amount of debt that an individual has by their gross income (total income before taxes and other deductions).
Example
If you have a gross income of $50,000 per year and total debts of $10,000 per year, your DTI ratio would be 20%. This means that 20% of your gross income is being used to pay off debts.
Related Terms
eStatements
An electronic version of a bank or credit union statement, which is a summary of an individual's account activity and current balance.
Joint Account
A financial account that is owned by two or more individuals, who have equal access to and control over the funds in the account.
Check
A written instrument that directs a bank to pay a specific sum of money to the bearer or named payee.

Previous Menu

-jpg.jpeg?width=312&height=170&name=04_09_26_auto_loan_header%20(2)-jpg.jpeg)




