American Apparel & Bankruptcy
American Apparel Inc has filed for Chapter 11 Bankruptcy. The Los Angeles based retailer has been plagued with financial problems, and has reportedly not made a profit since 2009. Even worse, former CEO and founder Dov Charney has been facing accusations of misused corporate funds, and allegations that he, on multiple occasions, breached the company’s sexual harassment policy.
Are you looking to get a better picture of your current financial standing? Calculating your debt-to-income ratio is a great way to monitor your personal finances, and to gain insight to what lenders are analyzing when considering your credit status.
What is a debt to income ratio?
The debt-to-income ratio compares your gross monthly income to the amount of debt (there are some exclusions to deb included such as monthly rent when you do not own your home) you currently owe. Your debt to income ratio can be figured easily if done on a monthly basis.