The Smith family has a gross income of $85,000 a year and they pay the following bills:
annual taxes: |
$19,550 |
monthly mortgage |
$1,850 |
credit card 1 |
$320 a month |
credit card 2 |
$190 a month |
personal loans: |
$113 twice a month |
department store charge account |
$65.00 a month |
Calculate their Debt limit.