A person's debt ratio shows the relationship between debt and net worth. the lower the ratio the

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15-04-2018
Business

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A person's debt ratio shows the relationship between debt and net worth. the lower the ratio the

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MrsTriplet MrsTriplet · Answer 1 · 2018-04-24T19:40:31+02:00

A person's debt ratio shows the relationship between debt and net worth. The lower the ratio the better off the person is financially.

When you are in good financial standing, if it necessary to have a low debt ratio. The debt ratio is how much debt to income or net worth someone has. When you have a low debt ratio you are often approved for larger loans and can sustain financial freedom more easily.