What is Debt to Income?


Your debt to income is a term that defines how much of your net income💷 is already committed to existing debts💳. ⠀⠀
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This number could make or break your credit applications. As having a high debt to income can signal that you have too much debt for the amount that you earn🤕.
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This includes debts such as car finance, credit card repayments and personal loans. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
This is important to lenders as they need to make sure that your existing debts + your new credit 🏡 repayments won’t put you into financial hardship.
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Every lender has a different requirement, but some say it is safe to keep your debt to income ratio under 35%.

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