Question

Which of the following ratios indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage)?

a. Debt ratio
b. Current ratio
c. Household ratio
d. Debt payments ratio
e. Savings ratio

Answer 1

The debt payments ratio indicates the amount of a person's earnings that goes towards credit card and loan payments.

Step-by-step explanation:

The ratio that indicates the amount of a person's earnings that goes for payments for credit cards, auto loans, and other debt (except mortgage) is the debt payments ratio.

The debt payents ratio is calculated by dividing the total debt payments by the person's earnings and multiplying it by 100 to express it as a percentage.