How to calculate your TDSR

Return to: TDSR Homepage

Now that you've calculated your income and calculated your debts it's time to proceed to calculating your Total Debt Servicing Ratio.

From your income calculation you are aware of:

  • Your monthly income
  • your spouse's monthly income (if applicable)
  • income from other sources like rental income, investments, etc.


From your debt calculation you are aware of:

  • Monthly housing costs (mortgage/rent/taxes/and half of your heating bill)
  • car lease or loan payments
  • 3% of your credit card balances
  • 3% of your credit line balances

Simply divide what you are spending by what you are making and you should get a number less than one - If the number is greater than 0.75 - please give us a call immediately to check your math - you may have an issue moving forward and obtaining credit with a financial institution.

In the case of a high TDSR number you generally have 3 options:

Make more money
Making more money may sound difficult however you may be able to use one of the following strategies:
  • Use your skills to find better or additional employment income
  • Increase the income of under-contributing family members (if possible)
Reduce your expenses
Reducing expenses may sound difficult but you have a few options:
  • Reduce your housing expenses - negotiate utilities to reduce heating costs, or relocate to a more-affordable residence
  • Consider your vehicles - do you really need 2? (or 3?)
Pay back your debt - less debt requires less money to service:
Paying back your debt is something that Canada Debt Settlements can definitely help you with - our knowledgeable staff are available to discuss your situation in detail.

For a list of all our services please see our Services Page or Contact Us.

Canada Debt Settlements  always free debt reduction consultation - Call to figure out your best next step... Contact us

Access our online debt reduction settlement application for a free confidential no obligation review of your situation

Canada Debt Settlements stands by the commitment and service guarantee that no client will be charged unless we can achieve a debt reduction. As our customer testimonials will demonstrate - we have a unique solution that allows a licensed agency to advocate with your creditors on your behalf. We work for YOU... not the creditor. Call now to speak with an experienced and licensed debt professional. What do you have to lose?

Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+


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