Calculating the debt ratio of a person or a family depends on two conditions. The first condition is the debt ratio, that is to say the amount of monthly payments you have to pay each month for the loan (s) already incurred. The second condition is what credit organizations such as banks call precisely, it is the rest to live .
This formula is very explicit, because a borrower must after monthly repayment of his loan (s) be able to keep enough money to pay his constant charges , such as food , rent , loans , insurance , telephone plan and many others. still, that most of us have to discharge every month or so.
The definition of the debt ratio is the percentage of fixed charges that you have to pay, and household income . The lender does an accurate calculation and tells you for sure how much you can ask for versus what you earn and also what you owe.
The incomes which are taken into account to establish the percentage, are the agricultural profits for a holding, the profits of the commercial or industrial enterprises, the commercial profits, the wages, the various pensions like the retirement pensions, the alimony and other annuities. . Benefits paid by the family allowance fund , subject to certain conditions. Income from financial investments is also taken into account. exceptional income, such as certain bonuses granted by his employer, for example, and those from actions do not count.
These charges relate to current loans, annuities and pensions that the applicant must pay regularly, the terms and rents that are payable after the loan has been approved by the bank, and the monthly payments that you will have to repay each month for the credit requested.
To calculate the debt ratio is very simple, you have to add up the charges payable and compare it to household income.