We need to find which percentage of her total income that she spends, per month. Remember that "savings" is not a spent.
Her total monthly spending, in dollars, is:
[tex]975+250+275+76+114+350=2040[/tex]
And her total monthly income, in dollars, is 2255.
Thus, the percentage of the income that she spends is given by:
[tex]\frac{2040}{2255}\cong0.9=90\%[/tex]
Therefore, since her spending corresponds to approximately 90% of her income, which is more than 20%, then she is in credit overload.
