Answer:

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.

Answer:

According to the provision of the tax code, all of the interest paid on home equity loan would be fully deductible (for federal purposes). It makes no difference what the original cost of the house is. The only concerned part is the indebtedness of the house does not exceed the fair market value.

A house owner is allowed to fully deduct his interest charges on home equity loan up to $100,000.

The original cost of the house is $200,000.

The home appraised value is $180,000.

The mortgage balance is $90,000.

The loan to value ratio is 75%.

Calculate the loan amount at loan-to value ratio as follows:

Therefore, the loan amount is

.

Calculate the maximum amount of home equity credit line as follows:

Therefore, the home equity credit line is

.

Conclusion:

Mr. D and J home equity line is within the limit i.e. $45,000; hence, it is completely tax deductible.

Answer:

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.

Hence, his debt safety ratio is;

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:

Hence, his debt safety ratio is;

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.