 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: What Is Debt-to-Income (DTI) Ratio?\n-----------------------------------\nYour DTI ratio shows how much debt you pay each month compared to your monthly income. Lenders use DTI to determine how much additional debt you can afford when you are applying for a loan. Together with your credit score and report, DTI helps to paint a picture of your overall financial health and your ability to repay a loan.\nDTI can come into play when you're applying for almost any type of new credit: mortgages, home equity loans, auto and personal loans, and even new credit cards. A high DTI may signal to a lender that your debt load is unmanageable—or could become so with the addition of new credit. That makes you a greater credit risk and may hamstring your ability to get a new loan or credit approved. END