Write a paper on Personal Finance Scenario.Good personal finance dictates you should stay on top of your household’s monthly credit card and consumer loan payments. One way to do this is by calculating your debt safety ratio – which is also an important measure of creditworthiness. In this assignment, you’ll use the following scenerio to calculate your debt safety ratio.
INSTRUCTIONS
Your monthly take-home pay is $3,320. Each month you pay $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge card, and $85 on your bank credit card.
Save your file as “worksheet 6.1 – your name”.
Once you have completed the worksheet, write a 2-3 paragraph reflection discussing the following:
Did you use your real data, or the assumed data?
According to the Monthly Consumer Loan Payments & Debt Safety Ratio worksheet, what is your debt safety ratio?
How does this fall in line with the low, manageable, and maximum debt safety ratios discussed in the textbook?
If you used your real data:
Does your current debt safety ratio surprise you?
Are you happy with your debt safety ratio?
What can you do to improve it?
If you used the assumed data:
What steps should you consider to improve your debt safety ratio?
The self-reflection paper should be created in a separate Word document, and saved as “debt safety ratio reflection – your name”.
**Rubric is attached. Thank you for helping with this assignment.
