The Debt Payments-To-Income Ratio Is

Multiple Choice

The debt payments-to-income ratio is:

A) calculated by dividing total liabilities by net worth.
B) calculated by dividing monthly debt payments (excluding mortgage payments) by net monthly income.
C) determined by dividing your assets by your liabilities.
D) a useless ratio for determining your credit capacity.
E) rarely used by creditors in determining credit worthiness.