How Healthy
Is Your Debt?Not all debt is bad.
Check on the health of your debt and learn how it impacts your financial health.
Check on the health of your debt and learn how it impacts your financial health.
For most of us, debt is a part of everyday life. We are often weighed down by credit card or other consumer debt that prohibits us from making the financial progress that we seek. But don’t be discouraged. Not all debt is bad. In fact, some debt that we accumulate can actually be beneficial and help reach our goals in life. It’s healthy debt. Healthy debt is manageable debt that helps you make progress toward achieving your life goals like owning a home, furthering your education, or purchasing a car.
Your debt-to-income (DTI) calculates how much of your monthly income goes toward debt payments. To put it simply, it’s your monthly debt payments divided by your gross monthly income. So why is your DTI ratio important? Your DTI not only assesses how healthy your debt is, but it’s one factor in how lenders measure your ability to manage your monthly payments, and consequently, your ability to repay the money you wish to borrow.
Help us learn more about how people navigate debt in their daily lives.
If you think your debt payments are too high, consider consolidating debt and credit cards with a Best Egg personal loans. You can refinance high-interest debt, lower your monthly payments and could improve your DTI health over time.
Won’t affect your credit score!