What counts and what does not
Counted: the proposed housing payment, car loans, student loans, minimum credit card payments, personal loans, child support, and other obligations reported on credit.
Not counted: groceries, utilities, phone plans, insurance outside of the escrowed policy, streaming, or tuition paid out of pocket. This is why the approved maximum can feel disconnected from real life.
The highest leverage payoff
Not all debt is equal. A car loan with a four hundred dollar payment and eight months remaining hurts your ratio far more than a card with a larger balance and a thirty five dollar minimum.
Before writing a check, ask which payoff removes the largest monthly payment per dollar spent. Occasionally paying off one small installment loan raises your purchasing power by tens of thousands.