If your monthly net (after-tax) income is $2,000, what should be your maximum amount spent on credit payments?
A)$200
B)$300
C)$400
D)$500
E)$600

Question

Quizplus · Accepted Answer

Financial experts generally recommend that no more than 20% of your monthly net income should be allocated towards debt payments. Therefore, 20% of $2,000 is $400, making choice C the best option. Options A and B represent less than 20% of the monthly income, which could be a manageable level of debt for some individuals, but it's not the best option for everyone. Options D and E are larger than 20% of the monthly income, which could be unsustainable and might jeopardize other important financial goals.

If Your Monthly Net (After-Tax) Income Is $2,000, What Should