What Should Your Debt Service Ratio Be? | DFI30

What Should Your Debt Service Ratio Be? | DFI30 | Ep. 444. A debt service ratio basically the amount of your monthly income that’s used to service your monthly debt payments. But why does this ratio matter and what’s a good debt service ratio to have? On today’s podcast, Doug Hoyes and Ted Michalos break down how a debt service ratio is calculated, what it means for your financial health and practical advice for how to avoid a high ratio and debt problems. Tune in to this episode, which also serves as a great introduction to financial literacy.

#debtserviceratio #debtservicecoverageratio #dsr #dscr

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#debt #debtserviceratio #debttoincomeratios #debttoincome #debtfree #debtfreein30 #DFI30 #debtfreejourney #personalfinance #personalfinancepodcast #podcast

[roseparapluie]

I just discoverd your channel. I really like it.

[ramireheavenz]

Growing quite fond of you guys. Great chemistry. Thanks again from New Jersey!!

[WATCHLLS]

Keeping yourself out of debt is life control. When you have debt you lose control over your life. It’s a simple equation.

[WATCHLLS]

Most people don’t realize this but the big banks don’t consider CPP as valid income for a mortgage loan. Because it’s not employment income. Renewed our very small mortgage last year and the bank said they couldn’t use my CPP as income. Well I spoke to a VP at that bank and that changed really fast.

[btcbull]

@8:50 Bank looks at your credit risk profile as you become a contributing factor to their aggregate solvency ratio due to post global finance crisis rules set by central banks. if most bank's customers are risky, the cost of borrowing for the bank goes up. the banking system wants a systematic approach to grant credit compare to the old days of relying on your "personal reputation".

[huntingupland]

Thanks for making this video. This is information that should be taught in schools.

[WATCHLLS]

When I was a kid my Dad would get loans for his business over the phone because he knew the Manager of the bank. Now I believe almost all loans are decided by computers.

[glenf]

Some potential show material... the "Financial literacy self-assessment quiz" on the Government of Canada Website. It gives some interesting results like 33% of Canadians do not know how inflation affects their savings, 25% do not use unit pricing when shopping, 44% are unaware of potential income tax owed on interest income and 33% unaware of ATM fees.

[WATCHLLS]

Once your investments or savings reach a point where you are making money in your sleep you are IMHO fiscally responsible. I will never understand the folks who spend more as they earn more instead of saving more when you earn more. If you where to pull over 9 out of 10 overpriced BMW’s almost all of those people are living well above there means.

[wellnesscanceradvocate]

Bingo financial literacy. Schools Dont when teach it.