Noel and Herman need to replace Noels car. But with the furniture and appliance payments, the credit card bills, and Hermans car payment, they are uncertain if they can afford another payment. The auto-financing representative has asked, What size payments are you thinking of? Current payments (excluding the potential cost of Noels car) total $475 of their $3,250 combined monthly take-home pay. Calculate the debt limit ratio to help them decide about the car purchase and answer the question What size payments are you thinking of? by first assuming a 15 percent limit and then stretching it to a 20 percent limit.