Debt-to-Income Ratio

(redirected from Debt to Income Ratios)

Debt-to-Income Ratio

The amount of an individual or company's gross income that it spends on debt service as a percentage of its total gross income. The higher the DTI is, the less likely it is that the individual or company will be able to repay debt. As a result, financial institutions use the DTI in informing decisions on whether or not to make loans. Often, the "debt" in the term refers to all liability payments (such as employee wages, taxes, and utility bills) and not simply to debt.
References in periodicals archive ?
Rising economic pressures continued to increase consumers' debt to income ratios during the review period.
Finally, CFSI said the fourth group, the Financially At Risk, also had unhealthily high debt to income ratios (48%), and 62% said they would only be able to make ends meet for a month or less in the case of a sudden loss in income.
With the new powers the FPC will be given tools to set limits on debt to income ratios and loan to value ratios for mortgages.
As early as the middle of 2007, the unemployment rate had increased more sharply in counties that had experienced the largest increase in their debt to income ratios from 2002 to 2006.
* Flexibility in underwriting criteria, including such items as debt to income ratios, payment reserves and limited credit histories
The report also explores various indicators on the financial health of South African consumers themselves, including repeat borrowing activity, debt to income ratios and instalment to income ratios.