Analysis of Debt to Income
Based on the data collected from 100 households with an average income of $46,758 annually,
the average debt is $11,770. Expressed as a ratio, the average debt-to-income (DTI) ratio
(debt/income) is 25%.
The DTI ratios are normally distributed.
Those households with the highest DTI ratio, defined as the top 3%, begin with those who are >
34.6%.
This sample cannot be used to make definitive conclusions for the US population; more samples
are required to provide reliable national figures.
The form of debt is not defined (student loan, credit card, mortgage). We have assumed that
since the data is from a consumer debt organization, it is exclusive of mortgage debt.
Conclusion
A DTI of more than 34.6% should be considered a serious debt problem and will include 3% of
households.
Histogram of Debt-to-Income
25
Frequency
20
15
10
5
0
0.12
0.18
0.24
0.30
Debt-to-Income
0.36
0.42
Descriptive Statistics: Debt, Income
Variable
Debt
Income
N
100
100
N*
0
0
Mean
11770
46758
SE Mean
406
1423
StDev
4063
14232
Minimum
2429
15514
Q1
8101
33103
Median
12077
48469
Q3
15131
58795
Maximum
20165
72709
Descriptive Statistics: Debt-to-Income expressed as a ratio
Variable
Debt-to-Income
N
100
N*
0
Variable
Debt-to-Income
Maximum
0.42986
Mean
0.25079
SE Mean
0.00507
StDev
0.05072
Minimum
0.11777
Q1
0.22346
Median
0.24533
Distribution Plot
Normal, Mean=0.25075, StDev=0.05072
8
7
Density
6
5
4
3
2
1
0
0.03
0.2507
X
0.3461
Q3
0.27891