There are two ways to improve a high debt to income ratio. First is to increase your monthly income. If it's possible, you may opt to ask for a raise from your current employer. You may choose to sell some items at home, hold a garage sale, take a part-time job, or perhaps do some small jobs such as gardening, babysitting, or plumbing. Having another job may sound taxing at first, but keep in mind that it only will be a short-term solution, not just to improving your DTI ratio, but for your financial situation. There may be a degree of difficulty in accomplishing this task, but at least, it would help in achieving your goal of becoming debt-free.

Another option is to lower your living expenses. There are many ways of doing this: you can reduce unnecessary food expenses by bringing a packed lunch to work. You can walk instead of drive—that is, of course, if your destination is nearby. You may also round up some friends and co-workers and set up a car pool to save up on gas expenses.

The first step to lowering your expenses is to create a budget. This way, you are able to keep track of where your money goes each month. A budget also creates a more organized way of spending. It also allows you to set limits for yourself and not just excessively overspend.

Another option is take action to pay off your debts. It’s possible to resolve your debts for less than you owe, which helps you to get out of debt much quicker than is otherwise possible, which in turn will strengthen your debt to income ratio. Keep in mind that settling your debts will likely have a negative effect on your credit report, so if the purpose of improving your debt to income is to qualify for a mortgage, you should carefully consider this option. After all, a healthier debt to income ratio is pointless if you cannot qualify for a mortgage because of negative marks on your credit report.

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How to calculate your debt to income ratio