CDAE 158 Lecture Notes - Lecture 10: Consumer Financial Protection Bureau, Credit History, Transunion
4 Oct 2018
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Review monthly bank and credit card statementa. Read policies of the websites you visit concerning refunds, site security, and privacy. Ask yourself if you can meet all essential expenses and still afford the monthly loan payments. Ask yourself what you plan to give up in order to make the monthly plan. Divide monthly debt payments by your monthly net income. Do not include your house payment in your monthly debt payments as it is a long term liability. Consumer credit payments should not exceed a max of 20% of your net income. Divide your total liabilities by your net worth. Do not include the value of your home or the amount of its mortgage in total net worth. Otherwise that means you owe more than you have. You are being asked to guarantee the debt, so consider if you can afford it if the borrower defaults.
