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.
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