Debt Service is an important aspect of any economy because it helps to ensure that the money lent out is paid back in a timely manner. In addition, debt service can also help to stimulate economic growth by encouraging lending.There are a few different ways that debt service can be calculated. The most common way is to simply add up the interest and principal payments for a particular time period. This figure can then be divided by the total amount of money borrowed or lent out in order to get a percentage rate.One thing to keep in mind when looking at debt service ratios is that they can vary significantly depending on the type of loan or investment involved. For example, government bonds tend to have much lower interest rates than corporate loans, so their debt service ratios will be lower as well.
