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II. (a) What is the debt safety ratio? Under what circumstances is it used? Apply it to the following fact pattern. Betty Stevenson has a

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II. (a) What is the debt safety ratio? Under what circumstances is it used? Apply it to the following fact pattern. Betty Stevenson has a monthly take home pay of $3,200. Her monthly consumer credit payments total $500. What is her debt safety ratio? What if her monthly consumer credit payments totaled $800? Now what is her debt safety ratio? What debt is left out of the debt safety ratio? What is a financially healthy debt safety ratio? Analyze Ms. Stevenson's financial situation in both instances. Could she qualify to buy a car on credit? Show your work

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