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 delines one's monthly loan repayment burden. It compares toan obligations to income. The formula for the debt safety ratio is: Debt Safety Ratio Total Monthly Consumer Credit Payments Monthly Take-Home Pay Debt Safety Ratio Ana wants to determine her current debt safety ratio. Her monthly take home pay is $5,000. She compiled the following monthly loan payment information: Type of Loan Payment Auto Amount $525 75 Student Credit Cards House mortgage 150 1,600 Total 52.350 The total monthly loan payments figure Ana will use when computing her debt safety ratio is $ 750 and les not include her house otal $2,350 otal monthly loan payments figure Ana will use when computing her debt safe gage. - debt safety ratio is % and considered 25 s debt safety ratio cha ders may now be 10%. Her take-home pay must have g to give her a loan than they were before this cha 10 20 - can periodically comp he's debt safety ratio be useful? Check all that app 15 It can serve as warning system of approaching financial trouble, It can influence decisions about looking for a higher- or lower-paying job. It can influence decisions whether to return to school, if a loan will be need ayments figure Ana will use when computing her debt safety ratio is $_750 % and considered safe - maximum debt or her mor changed to 10%. Her take-H willing to give her a loa safe - low debt his change. unsafe debt omputing one's debt safety r at apply. safe - manageable debt as an early warning system uble, providing time to nce decisions about looking for a higher- or lower-paying job. nce decisions whether to return to school, if a loan will be needed to pay for it. use when computing her debt safety ratio is $._750 and doe ed or her monthly loan paymer ke-home pay must have a loan than they were bef ge. increased ety ratio be useful? Check decreased tem of approaching financial trouble, providing time to take preventive m king for a higher- or lower-paying job. o return to school, if a loan will be needed to pay for it. does not include her house n payments must have decreased increased reventive measures. e continue The total monthly loan payments figure Ana will use when computing her debt safety ratio is $ 750 and does not mortgage include her house Ana's debt safety ratio is % and considered Ana's debt safety ratio changed to 10%. Her take-home pay must have Lenders may now be willing to give her a loan than they were before this change, or her monthly loan payments must have How can periodically computing one's debt safety ratio be useful? Check all that apely, It can serve as an early warning system of approaching financial trouble, providing time to take preventive measures. It can influence decisions about looking for a higher or lower paying job. It can influence decisions whether to return to school, if a loan will be needed to pay for it
