Juan takes home $4600 per month from his job as a business analyst. if his only debt obligations are a car loan payment of $690 and a mortgage payment of $860 every month, is he in danger of credit overload?

Not likely.

The reason I say not likely is because he might get into a car crash. House might burn, or vise versa. Maybe he goes to some where fancy for holiday, because he feels like kicking back a bit. There is always a chance to mess up.

This is what I took into consideration. subtracting the car loan payment and mortgage payment he has $3,050.00 left. I will say he spends $130.00 to grocery shopping. Most people do that weekly and there are little more than four weeks per month so I will just say five times. That is a minus $650.00 that he has left.

He now has 2,400.00 dollars left. Let's minus $400.00 just because we want's to go out and have a nice time or something. He is left with $2,000.00 at the end of the month. Lets save $1,000.00 and that leaves us with 1,000.00 that we have left over. If he gets into a car wreck, the is usually thousands of dollars. Who knows what can happen. But it is safe to say the he will likely not have to worry about credit overload.

therefore, the efficiency is: