Financial Obligation Ratio

(redirected from financial obligations ratio)
Also found in: Acronyms.

Financial Obligation Ratio

In personal finance, the ratio of mortgage payments, consumer debt payments, car payments and other debt to total disposable income. The financial obligation ratio shows how easily a person can make his/her debt service each month. This shows how likely a person is to default, which may affect his/her ability to take on more debt.
References in periodicals archive ?
The new household financial obligations ratio, introduced in this article, adds rent, auto lease payments, and other recurring obligations to the household debt service ratio.
The Financial Obligations Ratios for Homeowners and Renters
The financial obligations ratios for homeowners and renters also have different contours over time.
Full browser ?