5 Tips for Passing a Personal-Finance Stress Test

Divide your debts, including credit cards, student-loan and car-loan balances, and your mortgage, by your pretax earnings. That will give we your debt-to-income ratio.

Sheryl Garrett, a owner of a Garrett Planning Network, says a good order of ride is to have a personal debt-to-income ratio of reduction than 28%, not counting mortgages, or domicile debt-to-household income of reduction than 36%, including mortgages.

A aloft ratio is a warning that we have too most debt relations to your income and we possibly have to reduce your debt or lift your income, or both.

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