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Balancing the Spender Debt

The Spenders goals are to reduce the amount of dept they are in, that will eventually lead to them balancing their budget. Balancing the Spender Debt.

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Balancing the Spender Debt

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  1. The Spenders goals are to reduce the amount of dept they are in, that will eventually lead to them balancing their budget

  2. Balancing the Spender Debt • The current sources of their financial debts are money owed to credit card companies, paying for a car that is too expensive, and reducing other wasteful spending.

  3. Credit Card Savings • The current credit cards being used is causing the Spenders to incur interest by falling behind on payments on these cards. By using a new card they can transfer their balances to avoid interest and fees by transferring this dept to other cards that have lower rates. • The total term of the new card will be for 48 months that will create a total of $2198.75 in interest. This reduces their current amount of $7705 in interest payments reducing the interest they would have paid by $5506.25.

  4. Proposed Car Savings • Choices in regards to their automobile selection can be fixed. • The Hummer is very costly on the monthly payment at $898 a month or 10,776 per year. • The monthly payment on the Prius is substantially lower at $311 or $3,732 per year. • The savings per year on fuel are $7,694.1 per year. This switch on vehicles amounts to $14,738.10 in savings between payments and fuel.

  5. Phone Switch • Using a phone that perhaps does not include high monthly voice cost would be better way to budget the Spenders phone expense • Currently the phone that is being used is the I phone that is costing $190.80 per month. This phone is using 150 minutes monthly voice cost. • By switching to another Iphone that is only using 40 minutes of monthly voice the saving • will be considerable, reducing the phone payment to $74.20. This is a savings of $116.60 a month or 1399.2 per year.

  6. Entertainment & Communication Expenses • The current expenses with their entertainment choices, is $5832 per year. • The proposed expense summary would have the Spenders reduce their entertainment expenses to $2832. This would reduce the total entertainment to the savings of 3,000 per year. • Communication expenses amounts to $5688 per year. • With the proposed communication expense this would reduce communications to $4248. The savings for the proposal in communications would be $1400 per year.

  7. Proposed Debt Overview • By changing the Spenders lifestyle and spending choices the savings would help reduce a significant portion of their current expenses. The total savings would be $26,083.30 annually. This will bring down the expenses from $41,770.60 to $15,687.05 annually.

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