Debt service is the percent of:

Question

Quizplus · Accepted Answer

Debt service refers to the percentage of disposable income that consumers have to use to pay their debts, including both principal and interest payments. Option A is incorrect because it refers to the overall amount of debt owed by a country, not the percentage of income used to service that debt. Option C is incorrect because it refers to the value of household debt that banks pay, not the amount that consumers pay. Option D is only partially correct because it refers to the value of household debt that consumers pay in interest, but it does not include principal payments.

Debt Service Is the Percent Of