Can You Afford the Loan?
Before you approach a lender, run your own “Financial Health Dashboard”. If two or more of these ratios are in the Red Zone, you are one shock away from trouble.
| Ratio | Excellent | High Stress |
| Debt-to-Income (DTI) | < 30% | > 40% |
| Credit Utilization | < 30% | > 70% |
| Fixed Obligation (FOIR) | < 50% | > 60% |
| Emergency Fund | 6 Months | < 1 Month |
Watch this video to calculate your own ratios and see if your lifestyle is debt-driven.