Bill has a take home pay of $4300 each month. He has the following monthly obligations: Rent $850, Utilities $200, Cable $150, Food $400, Car Payment $275, gas for car $160, Visa $85, Best Buy loan $75, Khol’s $52, Master Card $50. What is Bill’s Debt Safety Ratio? What is the suggested range for a Debt Safety Ratio? Is Bill within the suggested range?

Bill's Debt safety ratio is 53.41860465116279

Suggested range for a Debt Safety Ratio 25- 35%

Bill is not within the suggested range

Explanation:

Bill's take-home pay is $4300 each month.

Bill's monthly debts are Rent $850, Utilities $200, Cable $150, Food $400, Car Payment $275, gas for car $160, Visa $85, Best Buy loan $75, Khol’s $52, Master Card $50.

Most advisers recommend that your debt service ratio should not reach 35 percent, and should be around 25 percent ideally.

gather the things you’ll need. it’s best to have a parent or guardian to you open an account. the parent or guardian can co-sign your account, which means that they’ll sponsor you. as co-signers, they’ll need to bring two forms of current photo id. if they only have one piece of photo id, their second id may be a current major credit card or gas card.