A good rule of thumb is to limit installment payments to ____________ percent of your net monthly income.
A)8
B)20
C)25
D)10
E)30

Question

Quizplus · Accepted Answer

The best choice would be to limit installment payments to 10 percent of your net monthly income. This would ensure that you have enough money to cover other essential expenses such as rent, food, and utilities, while also allowing you to pay off your installment debt in a reasonable amount of time. It is generally recommended that your total debt payments, including any credit card balances, car payments, and other loans, should not exceed 36 percent of your income, so keeping your installment payments to 10 percent is a good way to stay within this overall limit.

A Good Rule of Thumb Is to Limit Installment Payments