- Submitted By: soar60lead
- Date Submitted: 12/01/2014 10:50 AM
- Category: Miscellaneous
- Words: 255
- Page: 2

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