To determine if Hannah Garcia is in credit overload, we will first analyze her monthly expenses compared to her monthly take-home pay.
Monthly Take-home Pay:
- $2,255
Monthly Expenses:
- Rent: $975
- Utilities: $250
- Car Payment: $275
- Credit Card #1: $76
- Credit Card #2: $114
- Savings: $200
- Miscellaneous: $350
Now, let's calculate her total monthly expenses by adding all of them together:
\[ \text{Total Expenses} = \text{Rent} + \text{Utilities} + \text{Car Payment} + \text{Credit Card #1} + \text{Credit Card #2} + \text{Savings} + \text{Miscellaneous} \]
Plugging in the numbers:
\[ \text{Total Expenses} = 975 + 250 + 275 + 76 + 114 + 200 + 350 \]
Calculating it step-by-step:
- Rent + Utilities = \(975 + 250 = 1225\)
- Car Payment + Credit Card #1 = \(275 + 76 = 351\)
- Credit Card #2 + Savings = \(114 + 200 = 314\)
- Add miscellaneous = \(314 + 350 = 664\)
- Combine all = \(1225 + 351 + 664 = 2240\)
Thus, the total expenses amount to:
\[ \text{Total Expenses} = 2240 \]
Now that we have her total monthly expenses, we will compare it with her monthly take-home pay:
\[ \text{Net Income after Expenses} = \text{Take-home Pay} - \text{Total Expenses} \]
Substituting the values:
\[ \text{Net Income after Expenses} = 2255 - 2240 = 15 \]
Conclusion: Hannah has a monthly surplus of $15. This means she is not facing a credit overload; she is living within her means with a small buffer.
However, while she is not in credit overload, it's important to note that her income is very close to her expenses, and she does not have a large surplus for unexpected costs. Therefore, she should be cautious about future expenses that could lead her into credit overload.