Define income
CFPB’s DTI uses gross income before deductions. Do not assume identical methods or limits at every Azerbaijani lender.
FinFly Explains / Economy
Debt payments relative to income
Debt burden can be measured by monthly payments on all debts divided by monthly income.
Illustration
Payments of 600 on income of 2,000 equal 30%. This does not guarantee approval.
Check your budget separately
FinFly recommends calculating what remains after deductions, housing and living costs. A lending ratio does not replace a household budget.
Method
Primary sources
The explainer is checked against these institutional and industry sources. Links open the original material.