# Ways To Find Out What Is A Good Debt To Income Ratio

Ever wondered about your debt to income ratio? Do you even know what it is and how you can find yours? Can you use fast online title loans to lower your debt? Well, these are important questions to know the answers to.

To put it simply, your income to debt ratio is the percent of your monthly income – before taxes are deducted – that goes into paying for your monthly debt. These payments are for things like rent or mortgage, any child support payments or alimony you may have, credit card payments, and any loans you have to repay.

If you know your debt-to-income ratio, then you can gauge how a financial institution will view if you qualify for loans. Here are the answers to the important questions you’ve probably asked about your income to debt ratio.

### What Is A Good Debt To Income Ratio?

Lenders like to see a small debt to income ratio, as you probably gathered. Specifically, they don't usually touch you if you have one over 36%. Not to mention that no more than 28% of the debt should go towards paying off your mortgage.

Let’s do the math to give you a better idea about how your debt to income ratio is calculated.

Let's say you earn \$4,000 a month. Your monthly mortgage repayments can't be more than 28%. So, to work out your maximum mortgage payment, you would need to divide 4,000 by 0.28. This equals \$1,120.

Aside from the mortgage-related percentage, lenders will also calculate your total debt – which can't be over 36%, as we said earlier. To work this out with a \$4,000 per month income, you would divide 4000 by 0.36. This equals \$1,440. Your total debts can't equal over \$1,440 in this scenario.

### Does Debt Go Away With Time?

Generally speaking, your credit card balances and similar debts have limits. But regardless of whether it’s three years or seven years, you still owe the debt. After all, people want to get their money back! So make sure to take care of them or they will stay with you.

### Will Bankruptcy Get Rid Of All Your Debt?

Child support and alimony will not be eradicated if you file for bankruptcy. Tax debt and student loans can also be rather hard to shift too. However, you can always speak to a nonprofit credit counselor to see what they can do for you.

### Can You Be Arrested For Unpaid Debt?

Federal regulations ensure that you cannot be arrested or threatened with arrest if you haven’t paid your debt.

However, you should bear in mind that debt collectors can sue you for their payment. If you don’t appear in court for this, then you may well have an arrest warrant placed on you to ensure you comply with court orders. But don’t worry, that’s rare!

### What Is A Debt Consolidation Loan?

If your debt-to-income ratio is too high, a consolidation loan can be used to pay all of it off. In other words, it puts all of your debt into one place so you're making a simple once-a-month payment instead of multiple smaller ones.

### What Is The Best Type Of Loan For Bad Credit?

There are so many loan types available, but title loans are great for those of you with bad credit scores. This is a loan you receive when you put up your vehicle’s title as collateral. Now, usually, we wouldn’t recommend using this kind of loan to lower your debt-to-income ratio because this isn’t a long-term solution.

It is a short-term loan designed to help you out when you are dealing with an emergency you cannot handle on your own. But once you have a handle on your emergency, you can finally focus on lowering your debt-to-income ratio!

## The Benefits of Title Loans Near Me

There are many benefits to title loans that make them stand out from other more traditional loans. Those benefits include:

• The process can be done in as little as half an hour.
• You can start the application process at home.
• You can borrow anywhere between \$300 and \$15,000.
• You can keep your vehicle while you are repaying the loan.
• Bad credit isn't a problem. Whether you have a non-existent score, great score, or terrible score, we will work with you.
• We can be flexible with our repayment if you come to talk to us with time.
• You can use the title from any vehicle you own – car, truck, SUV, RV, or even motorcycle.

### How To Obtain Title Loans

Going through our process is simple for anyone. Just follow our guide below:

1. Go to our website and fill out our online form. It shouldn't take you too long to complete since we ask for basic information only.
2. Once you have submitted your completed form, one of our loan reps will give you a call back almost straight away.
3. During the conversation, they will talk you through the rest of the process, answer any questions you have, and define the documents you need to have.
4. This is also when you can choose whether you want to meet the loan specialist at one of our car title loans stores near me or a more convenient location for you.
5. Regardless of which option you choose, you will need to have your vehicle, driver's license or state-issued photo ID, and the lien-free title to your vehicle.
6. One of our loan experts will examine your paperwork and conduct a basic inspection of your vehicle.
7. If our loan specialist deems you suitable for a loan, you will receive the amount you qualify for on the same day or the next bank working day.

If you want to better understand how a financial institution deems you credible to lend money to, you may want to start by calculating your debt to income ratio. And if you want to find your ratio, start by asking these important questions today.

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.

You will be on your way to our store in no time since the call only takes a few minutes. All you need is the following items:

• Driver’s License or State Issued I.D.
• Lien-Free Title to Your Vehicle