Before taking out a loan,you should ask yourself whether you can meet all of your essential expenses and still afford the monthly loan payments.This can be determined by

Question

Quizplus · Accepted Answer

By adding up basic monthly expenses and subtracting this total from take-home pay, you can determine if you have enough leftover income to afford monthly loan payments. If needed, you can then also figure out what expenses you can reduce to make the payment manageable. Option A is correct but doesn't account for adjusting expenses. Option B is incorrect because you don't necessarily need to give up anything, but rather adjust your expenses. Option C is incorrect as it's an arbitrary calculation that doesn't account for your actual expenses.

Before Taking Out a Loan,you Should Ask Yourself Whether You