Question

Greta has a good credit rating and is considering taking out a car loan. Which of the following questions will help her make the decision of whether she should take on additional debt? Is gross income being considered? Are current fixed expenses a financial burden? Are fixed expenses fluctuating? Are variable expenses unpredictable? Is her quality of life already under pressure from current payment plans?

Answer 1

Great would need to ask the following questions

Are variable expenses unpredictable?

Is her quality of life already under pressure from current payment plans?

Are current fixed expenses a financial burden?

If Greta can reasonable predict her variable expenses and know that her current income is enough to handle fluctuations, then should can proceed with the purchase.