Robert Denby has a monthly take-home pay of $1,685; he makes payments of $410 a month on his outstanding consumer credit (excluding the mortgage on his home). How would you characterize Robert’s debt burden? What if his take-home pay was $850 a month and he had monthly credit payments of $150?
Answer to relevant QuestionsUse Worksheet 6.1. Rebecca Collins is evaluating her debt safety ratio. Her monthly take-home pay is $3,320. Each month, she pays $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge ...William Holland is trying to decide whether to apply for a credit card or a debit card. He has $8,500 in a savings account at the bank and spends his money frugally. What advice would you have for William? Describe the ...Explain some strategies for reducing the cost of student loans.Explain why a borrower is often required to purchase credit life and disability insurance as a condition of receiving an installment loan.Find the finance charges on a 6.5 percent, 18-month, single-payment loan when interest is computed using the simple interest method. Find the finance charges on the same loan when interest is computed using the discount ...
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