Use Worksheet 6.1. Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $2,520. Each month, she pays $270 for an auto loan, $120 on a personal line of credit, $95 on a department store charge card, and $115 on her bank credit card. Complete Worksheet 6.1 by listing Chloe's outstanding debts.

1. Calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. %
2. Given her current take-home pay, what is the maximum amount of monthly debt payments that Chloe can have if she wants her debt safety ratio to be 10.0%? Round the answer to the nearest dollar. $
3. Given her current monthly debt payment load, what would Chloe's take-home pay have to be if she wanted a 10.0% debt safety ratio? Round the answer to the nearest dollar. $

Worksheet 6.1

MONTHLY CONSUMER LOAN PAYMENTS & DEBT SAFETY RATIO
Name		Dated	October 15, 2023
					Current Monthly (or Min.) Payment
	Type of Loan*	Lender
	Auto and Personal loans	1.		$
		2.
		3.
	Education loans	1.
		2.
	Overdraft Protection Line	1.
	Personal line of credit
	Credit Cards	1.
		2.
		3.
		4.
	Home Equity Line	1.
		TOTAL MONTHLY PAYMENTS	$-
	*Note: List only those loans that require regular monthly payments.
	Monthly Take-Home Pay	1.		$
		2.
		TOTAL MONTHLY TAKE HOME PAY	$-
	Debt Safety Ratio:
		Total monthly payments	100	$-	100	=	0.0%
		Total monthly take-home pay	$-
	Changes needed to reach a new debt safety ratio
		1. New (Target) debt safety ratio:		%
		2. At current take-home pay of	$-	,
		total monthly payments must equal:
		Total monthly	take-home pay Target debt safety ratio**
			$-		0.000	=	$-
	OR				New Monthly Payments
		3. With current monthly payments of			$-	,
		total take-home pay must equal:
		Total monthly payments	100	$-	100	=	$-
		New (target) debt safety ratio	0.000
				New take-home pay
	**Note: Enter debt safety ratio as a decimal (e.g., 15%=0.15).