Every 4 months, Leo Perez takes an inventory of the consumer debts he has outstanding. His latest tally shows that he still owes $2,500 on a home improvement loan (monthly payments of $400); he is making $100 monthly payments on a personal loan with a remaining balance of $775; he has a $1,000, secured single-payment loan that's due late next year; he has a $70,000 home mortgage on which he's making $750 monthly payments; he still owes $7,700 on a new car loan (monthly payments of $400); and he has a $1,500 balance on his Mastercard (minimum payment of $30), a $50 balance on his Shell credit card (balance due in 30 days), and a $1,500 balance on a personal line of credit ($80 monthly payments).

1.  
   

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

2. Find his debt safety ratio, given that his take-home pay is $2,500 per month. Round the answer to 1 decimal place.
   %
3. Would you consider this ratio to be good or bad?
    

Answer rating: 100% (QA)

To find Leo Perezs debt safety ratio we need to calculate his total monthly debt payments and then d... View the full answer