Page 68 - Book3E

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Let’s Review__________________________________
Answer “True” or “False” to the following questions:
1. ____ Your debt-to-income ratio is the amount you owe compared to the amount you earn.
2. ____ Paying out-of-pocket is almost always less expensive than financing the purchase.
3. ____ You’re better off making as small a down payment as possible, freeing up ready cash for other needs.
4. ____ Your loan payments should be no more than 20% of the money you have left each month after paying all your regular expenses.
5. ____ Some purchases are worth using credit cards for, even if you’re trying to get out of debt.
6. ____ If an individual or family can’t afford to save in order to pay cash for an item, they certainly can’t afford to buy on credit.
How to Budget for a Major Purchase
(Answers: 1. T; 2. T; 3. F; 4. T; 5. F; 6. T)