Sue has a monthly take-home income of $3,250. She has availed a number of consumer loans including student loan, car loan, and a personal loan. Sue makes $350 monthly payments towards the outstanding student loan which will be fully repaid in another 10 years. Sue has recently availed a car loan, for which she will start to make repayment of $400 from this month. Tenure for a car loan is 5 years, while she uses the car for 7 years. Every time Sue buys a new car, the car loan goes up by 20% compared to the previous one (due to rise in car price in 7 years); consequently, the monthly car loan repayment will also be 20% higher than the previous car loan. Sue makes $250 monthly payments to repay the personal loan which will be fully repaid in 4 years. Now, Sue plans to avail a $150,000 mortgage with 20 years to repay and 6% annual interest rate. The loan will be repaid using equal monthly installments and the monthly payment starts this month. Assuming that Sue gets an annual pay rise of 2%, find out her debt-safety ratio (including mortgage) for each month for the next 20 years.
Draw a chart of the above monthly debt-safety ratio (months in x axis, ratio in y axis).