- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #1
Data:
A family friend has asked you to help one of their children who is having some financial problems. The son came over and gave you the following information: They have four children, ages three months to eighteen years. Their bills include a mortgage of $150,000 at 6%, a second mortgage of $20,000 at 7.5% (because they were too far in credit card debt), debts to various financial institutions of $10,000 at between 12 percent and 28 percent (she lost her job due to the latest pregnancy), a lease on a new truck of $18,000, a car loan on her car for $5,000, and miscellaneous Christmas bills totaling $3,000. After some work, you determined that debt payments represented 83% of their take-home pay.
Application:
What suggestions do you have to help them get out of debt?
