For individuals and families, their debt-to-income ratio says a lot about the state of their financial health. Generally, the lower the ratio the better because lower debt means less
money spent on interest payments and more money available for savings and investments. These can be used to fund important things like education or a new business, and to provide financial security to cover unexpected expenses or the loss of a job.
With countries, the debt-to-GDP ratio is one of the indicators of the health of an economy. It is the amount of national debt that a country is carrying as …Read More