The household debt-to-income ratio combines non-financial and financial accounts data. It is defined as the ratio of households’ debt arising from loans, recorded at the end of a calendar year, to the gross disposable income earned by households in the course of that year. It thereby constitutes a measure of the indebtedness of households, in relation with their ability to pay back their debt’s principal sum. The debt-to-income ratio is calculated on the basis of gross debt – that is without taking account of any assets held by households.