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Debt Worksheet

This document contains three scenarios describing individuals' monthly incomes and expenses. For each scenario, it asks what the individual should do in the short term regarding their financial situation. The scenarios include Todd needing $1,200 to fix his car and having to use most of his paycheck for it. Carmen having a roommate move out, leaving her unable to pay her portion of bills. And John having credit card debt and not enough to cover all expenses each month.

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130 views

Debt Worksheet

This document contains three scenarios describing individuals' monthly incomes and expenses. For each scenario, it asks what the individual should do in the short term regarding their financial situation. The scenarios include Todd needing $1,200 to fix his car and having to use most of his paycheck for it. Carmen having a roommate move out, leaving her unable to pay her portion of bills. And John having credit card debt and not enough to cover all expenses each month.

Uploaded by

api-340380090
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Name_______________________

Date____________

In the space provided, write the answers to the following questions.


1. List four of the most common reasons why consumers dont pay their bills.

2. List five warning signs of financial trouble.

3. List the first steps you should take if you find you cant pay your bills.

1. Todds monthly net income is $1,642.


His monthly fixed expenses include:
$550 for rent
A school loan payment of $232
A car payment of $152
An insurance premium payment of $112
His flexible monthly expenses include:
Utilities and telephone bills, which average $125
$120 for food
$50 for personal and household items
$50 for gas and oil
$100 for entertainment
His current credit obligations are:
$850 on a major department store credit card
The minimum monthly payment is $42
$1,200 on his major credit card, which he accrued from taking out a cash advance
The minimum monthly payment is $65
Todd keeps meaning to open a savings account and deposit a small portion of each
paycheck, just in case he has an emergency and needs extra cash. But he just hasnt gotten
around to it yet.

Todds car breaks down on the way home from work. His mechanic tells him that it will cost
about $1,200 to get the car running again. Todd needs his car to get to and from work. He just
got paid so he uses most of the money from his paycheck to get his car fixed. If you were
Todd, in the short term, what would you do about your present financial situation?

2. Carmen has a monthly net income of $810.


Her fixed expenses include:
$150 for rent (she shares an apartment with two friends)
Her flexible monthly expenses include:
$45 for her portion of the utility bills and the telephone bills
$95 for food
$50 for personal and household items
$50 for bus fare
$40 for entertainment
Her current credit obligations include:
$232 to the local department store, with a minimum monthly payment of $25
One of Carmens roommates decides to move out, two days before the next months rent is due.
Carmen and her other roommate are able to come up with enough money to pay the rent, but this
leaves Carmen without enough money to pay her portion of the telephone bill, the utility bills,
and her credit card payment.
If you were Carmen, what would you do?

3. Johns monthly net income is $1,550.


His fixed monthly expenses include:
$600 for rent
$262 for his car payment
$210 for his car insurance premium
His flexible monthly expenses include:
$20 for the telephone bill
$120 for food
$75 for personal and household items
$50 for gas and oil
$100 for entertainment
His current credit obligations include:
$2,000 on one of his major credit cards
The minimum monthly payment is $120.
$1,500 on another credit card, which he recently accrued from taking out a cash advance. (He
needed it because he didnt have enough to pay rent last month, and he wanted to buy a new
piece of stereo equipment for his car.)
The minimum monthly payment on this credit card is $110. John doesnt have any savings.

What do you recommend John do in the short term regarding his financial affairs?

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