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Budget5 min read
Debt-to-income ratio: why 35% is not a wall
The 35% threshold is a prudential benchmark, not an absolute rule. How it is calculated and what can qualify it.
By The editorial team · July 12, 2026
How it is calculated
The debt-to-income ratio compares your credit charges with your income. You divide all your monthly payments, including the future one, by your net income, then express the result as a percentage.
A benchmark, not a guillotine
The 35% threshold frames the risk, but the "money left to live on" matters just as much: on high incomes, slightly exceeding the threshold can remain sustainable.
Bringing it down
Consolidating loans, lengthening a term, contributing a sum or clearing a small loan: several levers bring the ratio back into a comfortable zone.
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