WHAT IS A GOOD DEBT TO INCOME RATIO?

Question

if i make 48,000 a year and have about 8,000 in bills is that a high debt to income ratio or is that considered to be equal to kinda normal i was kinda a curious about that. Thanx to any answers

Answer 1

Well, that kind of debt is not very high if the person is targeting the debt by paying it and not using the credit cards.  If not is an accident waiting to happen.  Debt is never good the only debt that's good is a house so good luck.

Answer 2

ZERO is the ONLY good debt number.  BILLS and DEBT are not the same.  Bills are things like utilities, rent, etc.  Debt is the result of spending money you don't have for things you can't afford.

NORMAL in the US = BROKE.  You should not WANT to be normal.

Answer 3

Use a guideline of about 10%.  You are way over that.  If you ever want to buy a house your level of debt will make it nearly impossible to qualify.  Time to pare it down.

Answer 4

A good debt to income ratio is 0.

You refer to that $8K as 'bills'.  Bills and debt are not necessarily the same thing.  Bills can include utilities, insurance, phone, etc.  Debt are actual loans and credit cards balances.

It also depends what kind of debt that $8K is.  If most of it is a mortgage or a car, that's not so bad.  But if it's all credit cards, that's very bad.