debt income ratio

Debt equity ratio define how much earning time you will require to pay all your debt .It also shows level of debt with your income .You can use yearly formula to check your financial position .

Total Debt(including interest)Gross IncomeYears to Pay your Debt
50000 100005 year
30000200001.5 year
100015009 months
Debt income example

Lower ratio shows better financial condition.Keep your debt income ratio low to avail better credit rating.


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