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The quiet-month bias in a borrowing budget
A recent period without annual bills or repairs can make available income appear unusually generous.
Extrapolating it across the loan term leaves foreseeable commitments outside the picture.
Including their timing improves the description without inventing a reserve rule. The resulting scenario remains conditional and cannot replace individual assessment of an agreement or household.
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Definitions
- Cash-flow timing
- Dates when income arrives and payments leave, distinct from their total over a month.
- Budget scenario
- An explicit set of income and expense assumptions used to explore a possible payment without treating it as personal advice.