Christine just finished her first year of work following graduation, and she fee

Question

Christine just finished her first year of work following graduation, and she feels it is time she assess her financial situation. Her annual gross income is $45,000, and her income after taxes is $35,800. She has the following liabilities. What is Christine's debt safety ratio, and what does it say about Christine's financial situation? show work please

Balance Payment
Auto loan $6,000 $265
Education loan $10,000 $250
Credit card debt $1,200 $58
Personal line of credit $3,900 $195
Home mortgage $75,000 $550

Explanation / Answer

The debts include credit-card bills, personal loans and installment payments, but not mortgage, insurance or utility expenses. Your income total should include the money you take out for voluntary deductions, so total debt = 265+250+58+195 =768 debt saftey ratio = debt/monthly salary(received) = 768/35800 =0.02145 = 2.145%

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