What is the importance of monitoring and maintaining a healthy debt ratio in personal finance?

Monitoring and maintaining a healthy debt ratio in Personal Finance is important because it helps individuals manage their debt responsibly and avoid financial strain. A healthy debt ratio indicates that a person is not overburdened with debt, which can lead to financial instability and difficulty in meeting financial obligations. By keeping a healthy debt ratio, individuals can better control their finances, build a good credit score, and achieve long-term financial stability.