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Debt to Income ratio. Whats a good number

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4 replies to this topic

#1 joulian

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Posted 18 December 2011 - 10:51 AM

I have a small biz.
I would like to know what is a healthy ratio number for household and also small business.

Obviously 1 is good. Is there perhaps a 'chart of philosophy' on say once you cross the 3 threshold, the 10 threshold etc...

#2 bullthistle

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Posted 18 December 2011 - 12:12 PM

If you have a small business you best not have any debt and your taxes should show that you are making money not losing it because the IRS looks at the balances come March and if you have loses year after year expect then to come knocking. 10% on personal.

#3 hegemony


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Posted 18 December 2011 - 01:25 PM

our DTI is 6.5% I consider that healthy.

#4 TroyP

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Posted 20 December 2011 - 12:58 PM

Totally depends on the situation.

My Debt to Income is around .11. That alone doesn't tell a user of that number hardly anything. The only debt I have is the balance of my student loans.

My buddy and his wife have a DTI ratio of about 4.0. On the surface, my DTI looks much healthier than his. What the DTI ratio doesn't reflect is that his debt consists of a $400,000 mortgage on his home, in which he has about $200k in equity.

#5 Dano75

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Posted 24 December 2011 - 03:52 PM

our DTI is 6.5% I consider that healthy.

I'd consider that really healthy the way the world is these days. Hope you get on well :)

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