The percent of disposable income that consumers have to spend to pay their debt is called:

Question

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The percent of disposable income that consumers have to spend to pay their debt is known as debt service. It refers to the amount of money that has to be paid towards the principal and interest of the debt. This helps lenders to assess the borrower's ability to repay the loan. The higher the debt service ratio, the more difficult it is for the borrower to pay off their debt.

The Percent of Disposable Income That Consumers Have to Spend