3. Debt salety 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 tha defines one's monthly loan repayment burden. It compares loan obligations to income. The formula for the debt safety ratio is Delle Safety Ratio = Total Monthly Consumer Credit Payments Monthly Take Home Pay Debt Safety Ratio Hilary wants to determine her corrent debt safety ratio. Her monthly take home pay is $4,000. She compiled the following monthly loan payme information: Amount $700 100 Type of Loan Payment Auto Student Credit Cards House mortgage Total 200 1,500 $2,500 The total monthly loan payments figure Filary will use when computing her debt safety ratio is 5 1.000 and mortgage include her hous The total monthly loan payments figure Hilary will use when computing her debt safety ratio is $1,000 mortgage and include her house Hilary's debt safety ratio is 25 % and considered safe maximum debt Hilary's debt safety ratio changed to 30%. Her take home pay must have or her monthly loan payments must have Lenders may now be willing to give her 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, fa loan will be needed to pay for it It can influence decisions about looking for a higher or lower paying job