Chapter 7 Financial Planning Exercise 3 Calculating debt safety ratio Use Worksheet 7.1. Every 6 months, Sean Ma takes an inventory of the consumer debts that he has outstanding. His latest tally shows that he still owes $3,000 on a home improvement loan (monthly payments of $250); he is making $60 monthly payments on a personal loan with a remaining balance of $850; he has a $1,000, secured, single-payment loan that's due late next year; he has a $60,000 home mortgage on which he's making $800 monthly payments; he still owes $11,100 on a new car loan (monthly payments of $575); and he has a $1,180 balance on his MasterCard (minimum payment of $40), a $90 balance on his Exxon credit card (balance due in 30 days), and a $1,000 balance on a personal line of credit ($60 monthly payments). Use Worksheet 7.1 to prepare an inventory of Sean's consumer debt. Round the answers to the nearest cent. Currently Monthly Payment $ Latest Balance Due Creditor $ $ $ $ $ Type of Consumer Debt Auto loans Personal installment loans Home improvement loan Single-payment loans Credit cards (retail charge cards, bank cards, T&E cards, etc.) Personal line of credit Totals $ $ MasterCard Exxon $ $ $ $ $ Find Sean's debt safety ratio given that his take-home pay is $3,000 per month. Round the answer to 1 decimal place. % Would you consider this ratio to be good or bad? Good