im paula. im thinking of cancelling a subscription that costs $50 a month. will that help lower my debt - to…

im paula. im thinking of cancelling a subscription that costs $50 a month. will that help lower my debt - to - income ratio? will cancelling the subscription affect paulas debt - to - income ratio? a. no, because a monthly subscription bill is not a debt payment. b. yes, because a debt - to - income ratio includes all of your monthly expenses.

im paula. im thinking of cancelling a subscription that costs $50 a month. will that help lower my debt - to - income ratio? will cancelling the subscription affect paulas debt - to - income ratio? a. no, because a monthly subscription bill is not a debt payment. b. yes, because a debt - to - income ratio includes all of your monthly expenses.

Answer

Brief Explanations:

A debt - to - income ratio is calculated by dividing total monthly debt payments by gross monthly income. A monthly subscription bill is not a debt payment like a loan payment or credit card payment. Canceling it won't change the debt part of the ratio.

Answer:

A. No, because a monthly subscription bill is not a debt payment.