Lending institutions evaluate borrowers' repayment ability not only by their income, but also by their liabilities. Although many people have high and stable incomes, as long as the debt ratio reaches 50%, the borrower's repayment ability is not optimistic, and the debt ratio can only be reduced by repayment. So, after the loan has been repaid for ten months, has the debt ratio decreased? Let's have a look.

The loan has been repaid for ten months. Has the debt ratio dropped?

As we all know, the borrower's debt is usually the outstanding credit card and loan debt on the credit report. No matter what kind of debt, repayment is the most important way to reduce debt. For this reason, if the debt is due to borrowing, the borrower's debt will definitely decline if it is paid once every ten months.

For example, the borrower owes a loan of 50,000 yuan, with an annual income of 654.38+10,000 yuan and a debt ratio of 50%; The monthly repayment is 2,000 yuan, and it will be 20,000 yuan after ten months, so the remaining debt is only 30,000 yuan, and the existing debt ratio is only 30%. Compared with 50% liabilities, 30% liabilities are reduced by 20%.

Of course, in addition to repaying loans and reducing debts, you can also reduce debts by increasing income. After all, debt is directly proportional to income. The higher the income, the lower the debt ratio. Usually there are several ways to increase income, one is to work hard, get promoted and get a raise, and the other is to earn money part-time in your spare time.

Finally, it should be reminded that repaying loans can reduce the debt ratio, but if the overdue loans are paid off, the arrears will be settled, but the credit will not be restored immediately. In the case of overdue records, even if the subsequent borrowers have strong repayment ability, it is still difficult to apply for loans.

Is the debt ratio reduced after ten months of loan repayment? I hope it will help everyone.