The 28/36 Rule: A Guiding Light for Financial Wellness - CloudBankin – A digital loan software by Habile Technologies

Do you know “The Golden Rule” that lenders use to gauge your Expense-to-Income Ratio for a bank statement analysis?

It’s often recommended that only 50% of your income should be directed towards expenses.

But how do we determine a safe debt level?

The 28/36 Rule:

1) Housing: No more than 28% of your gross monthly income should go towards housing expenses like monthly house rent, gas bill, electricity bill, water bill, any property tax, etc.
2) Debt: Your total monthly debt service on loans or any credit shouldn’t surpass 36%.

This rule ensures a balanced approach to financial commitments and aligns with the broader goal of maintaining a healthy Expense to Income Ratio for the borrowers.

#bankstatements #lenders #financialmanagement #manispeaksmoney

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