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

Option D is the most comprehensive approach to determine whether you can afford the monthly loan payments. It involves adding up your basic monthly expenses and subtracting this total from your take-home pay. Then, you need to figure out what expenses you can give up to make the monthly loan payment without compromising your essential living expenses. This will give you a clear idea of whether the loan is affordable for you or not. Option A does not account for giving up expenses, option B is only relevant if you know what you plan to purchase, option C does not factor in essential expenses, and option E is incorrect as one of the options must be correct.

Before Taking Out a Loan, You Should Ask Yourself Whether