I was looking over our financials this morning and calculated that our total household debt (including our mortgage) to income ratio is .81. By this time next yearassuming we make no purchases on creditthat number should be around .75.
I’m pretty happy with that numberespecially when I hear that the average household’s ratio is around 1.3 (or 130%).
Remember, to get the ratio, you simply divide your total debt by your annual income (use gross income for simplicity’s sake).
What’s your total debt to income ratio?
I’m thinking it would be relatively low for AFM readers since you guys seem to be on top of your finances. But, I’d still be curious to know (if you’re willing to share the information)