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    • don78
    • By don78 11th Aug 18, 10:07 AM
    • 24Posts
    • 25Thanks
    Debt to income- putting things into perspective
    • #1
    • 11th Aug 18, 10:07 AM
    Debt to income- putting things into perspective 11th Aug 18 at 10:07 AM
    This morning Iíve been browsing online and stumbled across nationwides debt to income calculation that they use when assessing mortgage applications etc. Apparently itís calculated by dividing your total monthly debt payments by your gross monthly income and multiplying the result by 100 to get a percentage.

    Ours comes out at 35% which is apparently Ďhealthyí. They donít like the % to exceed 45%.

    I know that this doesnít negate from the fact that our debt is high, but it does put things into perspective and makes me remember that itís all relative
Page 1
    • NeverendingDMP
    • By NeverendingDMP 11th Aug 18, 11:06 AM
    • 142 Posts
    • 615 Thanks
    • #2
    • 11th Aug 18, 11:06 AM
    • #2
    • 11th Aug 18, 11:06 AM
    I had a quick go with income and monthly debt costs pre kids then post first child and then again post the twins.
    26 percent pre kids
    24 percent after first born
    22 percent now in our DMP. Would be 33 if paying contract minimums.

    All seem very healthy but it's not ha ha. Puts into perspective what I have thought all along. Childcare costs have ruined us aaaaargh. All a bit of fun. Figures slightly guessed though and I know childcare comes up in affordability checks. Ever changing though and we are over the worst of it.
    35,213 in Jan 2018, 29861 remaining.
    Mortgage 77230 in Jan 2018
    74872 remaining.
    Emergency fund 250
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