Every 6 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $2,500 on a home improvement loan (monthly payments of $250); he is making $75 monthly payments on a personal loan with a remaining balance of $875; he has a $1,500, secured single-payment loan that's due late next year; he has a $85,000 home mortgage on which he's making $1,100 monthly payments; he still owes $12,600 on a new car loan (monthly payments of $675); and he has a $1,230 balance on his Mastercard (minimum payment of $50), a $45 balance on his Shell credit card (balance due in 30 days), and a $700 balance on a personal line of credit ($80 monthly payments).

1. Use Worksheet 7.1 to prepare an inventory of Leo's consumer debt.

   Type of Consumer Debt	Creditor	Currently Monthly Payment	Latest Balance Due
   Auto loans		$	$
   Personal installment loans		$	$
   Home improvement loan		$	$
   Single-payment loans			$
   Credit cards	Mastercard	$	$
   (retail charge cards, bank cards, T&E cards, etc.)	Shell	$
   Personal line of credit		$	$
   Totals		$	$

2. Find his debt safety ratio, given that his take-home pay is $3,500 per month. Round the answer to 1 decimal place. %
3. Would you consider this ratio to be good or bad?