Debt Score measures both the structure and cost of your liabilities.
Structural half
The structural score combines:
- Debt-to-assets (DTA): total liabilities divided by gross assets. 0% maps to 100 points; 50% or more maps to 0.
- Debt-to-income (DTI): total liabilities divided by annual income. Zero maps to 100 points; three times annual income or more maps to 0.
If income is missing, only DTA is used for the structural part.
Cost-of-debt half
When liabilities have annual interest rates, Hugo calculates a balance-weighted average rate. 0% maps to 100 points; 15% or more maps to 0. Liabilities without a rate are excluded from that average.
Once at least one rate exists, structure and cost each provide half of Debt Score. Before any rate is entered, the score uses structure only.
The card displays DTA, DTI when available, and the weighted average rate. Keep both balances and interest rates current.