# What is household debt to income ratio?

## What is household debt to income ratio?

The debt-to-income ratio – abbreviated as DTI ratio – is a measure of the amount of debt held by a person or household to the amount of disposable income they take in. It is calculated by summing all the debts held (mortgage, car loan, credit cards, credit margins, personal loans, etc.)

How is household debt measured?

The most commonly used measure of household indebtedness is the debt-to-income (DTI) ratio.

### Which countries have the highest household debt?

In 2020, Hong Kong, United States, and China had the highest household debt of the selected countries when measured as a share of gross domestic product (GDP).

Does household debt to income ratio include mortgage?

Take your total monthly debt payments, including rent or mortgage, minimum credit card, car payments, etc., and divide by your total household monthly income. According to Consolidated Credit, your debt-to-income ratio should be 36 per cent or less.

#### What is the debt to income in the euro area?

Households Debt To Income in Euro Area is expected to reach 101.00 percent by the end of 2021, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Households Debt To Income is projected to trend around 97.00 percent in 2022 and 95.00 percent in 2023, according to our econometric models.

How is household debt calculated by the OECD?

Debt is calculated as the sum of the following liability categories: loans (primarily mortgage loans and consumer credit) and other accounts payable. The indicator is measured as a percentage of net household disposable income.

## How is the debt to income ratio calculated?

Your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. Specifically, it’s the percentage of your gross monthly income (before taxes) that goes towards payments for rent, mortgage, credit cards, or other debt. To calculate your debt-to-income ratio: Step 1:

How much wealth does the euro area have?

The stock of households’ net worth in the euro area amounts to around seven times annual disposable income, highlighting the importance of wealth for household economic resources.