D
General
Debt-to-Income Ratio
The percentage of your gross monthly income that goes toward debt repayments. Lenders use this ratio during affordability assessments. A ratio above 40-50% typically means you are over-indebted.
Usage Examples
"With R6,000 in monthly debt payments and a R20,000 salary, his debt-to-income ratio is 30%."
"Most lenders prefer a debt-to-income ratio below 40% before approving a new loan."