 TITLE: What Is an Ideal Debt-to-Income Ratio? CONTENT: How Can I Improve My Debt-to-Income Ratio?\n------------------------------------------\nImproving your debt-to-income ratio means lowering it, and doing so requires some combination of two things: reducing your monthly debt and increasing your income.\nOn the debt-reduction side of the equation, your options may be limited. Long-term student loan or mortgage payments may not be something you can easily change. If you have credit card debt, however, paying down your balances will reduce your minimum monthly payments and lower your DTI ratio. If you've got a personal loan or car loan, waiting until it's paid off before you seek a mortgage will also let your application reflect a lower DTI ratio.\nWith respect to income, negotiating a better salary or trading up to a better paying job is easier said than done (and if it were possible, you'd have probably done so already, without needing inspiration in the form of your DTI). If you feel you deserve a raise and can document the reasons why, it can't hurt to ask. Otherwise, consider pursuing a \"side hustle\" that earns you some extra income.\nLenders consider debt-to-income ratio an important metric for gauging your ability to handle additional loan payments. Calculating your own DTI ratio can help you understand your eligibility for various loans and can guide your loan-application process accordingly. END