Debt Trap Calculator

DTI = Total monthly debt payments ÷ Monthly gross (or take-home) income × 100. It's the standard measure lenders and financial advisors use to judge how much of your income is already committed to debt.

Under 20% is generally considered low risk, 20-36% manageable, 36-43% elevated, 43-50% high risk, and 50%+ is considered critical — at that level, most or all discretionary income is gone and a single financial shock (job loss, medical bill) can be catastrophic.

This is a simplified estimate: total debt ÷ monthly debt payment, assuming your full payment goes to principal (ignoring ongoing interest accrual) — the real payoff time is typically longer once interest is factored in, especially for high-rate credit card debt.

Common steps: build a bare-bones budget to free up cash for extra payments, use the debt avalanche (highest interest rate first) or snowball (smallest balance first) method, contact creditors about hardship programs, or consult a nonprofit credit counselor — avoid taking on new debt to cover the gap.