Takes an inventory of conusmer debts

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Reference no: EM131319165

Every six months, Larry Sun takes an inventory of conusmer debts that he has outstanding. His latest talley shows that he still owes $4000 on a home improvement loan (monthly payments of $125); he is making $85 monthly payments on a personal loan with a remaining balance of $750; he has a $2000, secured, single-payment loan thats due late next year; he has a $70000 home mortgage on which he is making $750 monthly payments; he still owes $8600 on a new car loan (monthly payments of $375); and he has a $960 balance on his MasterCard (minimum payment of $40), a $70 balance on his Exxon credit card (balance due in 30 days), and a $1200 balance on a personal line of credit ($60 monthly payments). Use Worksheet 7.1 to prepare inventory of Larry;s consumer debt. Find his debt safety ratio given that his take-home pay is $2500 per month. Would you consider this ratio to be good or bad? Explain.

Reference no: EM131319165

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