I'm going to be a contrarian and say that a decent debt to income ratio is about 1 to 1.
Caveat - For a home mortgage.
Interest rates are at an all time low. 15 year rates are less than 3%. Take into account that mortgage interest is tax deductable and its an absolute no brainer.
It makes sense to carry a mortgage loan and use the extra cash flow to invest in the market (at least for the last several years- during this bull run)
Credit card rates are fool's money. If you have the ability, roll them up and take out a home equity loan to pay them off. Pay off the HELOC and reap the benefits of a tax deduction.
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Last edited by MCS; 03-15-2013 at 11:19 AM.
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