3. Debt safety ratio - How much credit can you stand? To maintain financial stability, people should know how much credit they can comfortably tolerate. The debt safety ratio is a computation that defines one's monthly loan repayment burden. It compares loan obligations to income, The formula for the debt safety ratio is: Debt Safety Ratio = Total Monthly Consumer Credit Paymonts 1. Monthly Take-Home Pay Debt Safety Ratio Charles wants to determine his current debt safety ratio. His monthly take-home pay is $5,000. He compiled the following monthly loan payment information: The total monthly loan payments figure Charles will use when computing his debt safety ratio is $ and include his house mortgage. Charles's debt safety ratio is % and considered Charles's debt safety ratio changed to 20%. His take-home pay must have or his monthly loan payments must have . Lenders may now be willing to give him a loan than they were before this change. How can periodically computing one's debt safety ratio be useful? Check all that apply. It can serve as an early warning system of approaching financial trouble, providing time to take preventive measures. It can influence decisions whether to return to school, if a loan wili be needed to pay for it, It can influence decisions about looking for a higher- or lower-paying job