Monthly debt repayment = 8,000
Monthly net take-home pay = 32,000
Debt-to-income ratio = 8,000 / 32,000 = 25%
Your debt-to-income ratio is presented as a percentage. Thus, with the example on the left, you have a debt-to-income ratio of 25%.
Generally, a debt-to-income ratio of more than 40% is a signal that you may have too much debt and could be header for some financial trouble. A high debt-to-income ratio could mean that you can be denied further credit or you will have to pay a higher interest rate if you take on more credit.
*Income refers to your net take-home pay (or your earnings minus takes and other deductions)
For any concerns, you may call us at (632) 8995-9999 or send us a message through www.citibank.com.ph.
Citibank, N.A. Philippine Branch is supervised by Bangko Sentral ng Pilipinas with telephone number (632) 8708-7087.