Use Worksheet 7.1. Every 4 months, Sean Ma takes an inventory of the consumer debts that he has outstanding. His latest tally shows that he still owes $3,750 on a home improvement loan (monthly payments of $175); he is making $105 monthly payments on a personal loan with a remaining balance of $625; he has a $2,250, secured, single-payment loan that's due late next year; he has a $90,000 home mortgage on which he's making $900 monthly payments; he still owes $7,100 on a new car loan (monthly payments of $400); and he has a $760 balance on his MasterCard (minimum payment of $40), a $30 balance on his Exxon credit card (balance due in 30 days), and a $900 balance on a personal line of credit ($50 monthly payments). Use Worksheet 7.1 to prepare an inventory of Sean's consumer debt. Round the answers to the nearest cent.

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.)	Exxon	$
Personal line of credit		$	$
Totals		$	$

Find Sean's debt safety ratio given that his take-home pay is $2,500 per month. Round the answer to 1 decimal place.

%

Would you consider this ratio to be good or bad?