Lesson 4 of 6

Income stability, volatility and buffers

Two borrowers with the same average income can be very different risks. One is paid the same amount every month; the other has good months and bad ones, and a balance that runs close to zero before each payday. This lesson shows how to measure how much income varies, how the length of the statement affects the answer, and how to read the buffer a borrower keeps.

Published 19 October 2026