Quiz 6: Using Credit

Business

Credit is an amount used through credit card to buy (or) full fill our personal requirements. Here Ms. J is wise enough to create her own credit history. She should start recording her credit history by opening a bank account and applying for credit cards. Then, she should use these credit cards and start paying the bills in due time promptly. If she had paid the interest of the education loan on time, then taking the education loan will demonstrate her eligibility to meet her loan obligation.

Calculate the Debt safety ratio; if he has taken monthly home pay of $1,685: Debt safety ratio is a ratio (or) proportion of total monthly consumer credit obligations to monthly take-home pay. This debt safety ratio is a bit above the maximum suggested unit of 20%. Hence, Robert should be cautious about incurring any more debt before he pays off his current obligations. img Hence, his debt safety ratio is; img Therefore, the debt safety ratio is 24%, if he has taken monthly home pay of $1,685 Calculate the debt safety ratio; if he has taken monthly home pay of $850: img Hence, his debt safety ratio is; img Therefore, the debt safety ratio is 18%, if he has taken monthly home pay of $850 Conclusion: This is within the recommended guidelines. Hence, 18% is closer to the suggested limit of 20%, so, he would try to reduce his debt load.

Debt safety ratio is a ratio (or) proportion of total monthly consumer credit obligations to monthly take-home pay. This debt safety ratio is a bit above the maximum suggested unit of 20%. Hence, Robert should be cautious about incurring any more debt before he pays off his current obligations. The debt safety ratio of Rebecca Collins is calculated as follows: img Debt safety ratio is calculated as: Total monthly consumer credit payments is $645 Monthly take-home pay is $3,320 img Therefore, the Debt safety ratio is 19.43% Conclusion: This is within the recommended guidelines. Hence, 19.43% is closer to the suggested limit of 20%, so, she would try to reduce his debt load. Monthly consumer loan payments: Debt safety ratio Name: Rebecca Collins Date: July 26 th 2014 img Calculate the maximum amount of monthly debt payments, if she wants her debt safety ratio to be 12.5%: If Rebecca wants her debt safety ratio to be only 12.5% of her current take home pay, she should reduce her total monthly payments to: Monthly take home pay is $3,320 Required debt safety ratio is 12.5% img Therefore, the maximum amount of monthly debt payments, if she wants her debt safety ratio to be 12.5% is img Calculate the take home pay, if she wanted a 12.5% debt safety ratio: If Rebecca wants her current consumer debt load to equal 12.5% of take home pay, then she should increase her take home pay to: Total Monthly payment amount is $645 Required Debt safety ratio is 12.5% img Therefore, the take home pay is img