1.Carefully review the background information on Bob and Debbie Smith's debt payments and their balance sheet on pages 478 and 499

2.Read and consider the Case Study Analysis presented at the end of Chapter 9 in your textbook,Biblical Financial Planning: A Biblical Worldview of Personal Finance(page 219).

3.Using the4.5 Debt Schedule and Repayment Plan Spreadsheet Template,build a debt schedule and repayment plan for the Smith family.

4.Using the4.5 Accountability Statement Template, type an accountability statement for the Smith family and its members that affirms a joint commitment to stop going into debt, explains the actions they will take to hold themselves accountable, and defines how they will reward themselves as they achieve each step in the repayment plan.

5.Your responses should demonstrate your understanding of the concepts at hand and your ability to apply these concepts to the case study situation.

Case Study Analysis Dropbox 4.5 Accountability Statement Template BUS-150 Personal Finance Student Name: Type name here Submission Date: Type date here Instructions: Fill out each section of the Debt Control Accountability Statement on the next page from the Smith family's perspective. (1) First write a 2-3 sentence paragraph acknowledging the family's past choices have created unproductive and perhaps unnecessary debt burdens on the family, and describe the impact this burden has had on the family (psychological, financial, etc.). (2) Second, write a 2-3 sentence paragraph describing how the family's existing debt burden, if not addressed, will negatively affect the family's future and goals. (3) Third, write a 2-3 sentence paragraph expressing the family's commitment to aggressively pursue debt reduction, per the plan devised in your Debt Reduction Schedule, and then to stop using debt in the future to ensure the mistakes of the past aren't repeated. (4) Fourth, make a list of the specific measures that will be taken to ensure the family and its members stay committed and accountable to their plan. Examples could include a weekly family budget meeting, a monthly meeting with a pastor or financial counselor, or reductions to discretionary spending if progress is not acceptable. (5) Finally, make a list of rewards the family promises themselves as each milestone in the Debt Reduction Schedule is reached (as shown on your accompanying Excel spreadsheet: Debt Schedule and Repayment Plan Template). Family Accountability Statement Debt Reduction and Control Acknowledgement of our past choices and their impact: Acknowledgement of the limitations on our future: Statement of commitment to debt reduction and control: Measures that will be taken to ensure accountability (be specific): 1. 2. 3. 4. 5. Rewards for reaching each major milestone in our Debt Reduction Schedule: 1. 2. 3. 4. 5. Dated: Type date here Signed, __________ Bob Smith __________ Debbie Smith __________ Sean Smith __________ Chloe Smith __________ Clara Smith Instructions: 1. Save a copy of this file! Include your last name and the assignment in the file name, like "Kendall_D 2. Using the information from your analysis of the case study, complete all the Input cells are highlighted in green. Like this! You should input inform Also, do not try to modify cells that are not input cells. Modifying cells Green means "go"... You should input your information in the green cells. Titles and calculated cells are highlighted in aqua. Like this! 3. Move your Debt Schedule data over into the Debt Repayment Plan workshe Select and enter the total extra monthly payment you intend to apply to deb Place the debts in order in the Debt Repayment Plan, according to which de Allocate your extra monthly payment across the highest priority debts as yo Take note of the money and time savings calculated and shown highlighted There should be no need to modify any of the worksheets included in this sp 4. Once complete, submit this file, along with your Word document responses ame, like "Kendall_Dropbox4-5.xls" udy, complete all the input fields shown on the Debt Schedule worksheet tab below. u should input information only in the green cells. lls. Modifying cells that are not input cells may corrupt the spreadsheet's formulas and pr in the green cells. However, depending on your analysis, you may not need to fill in every input c ayment Plan worksheet tab, following the worksheet instructions. tend to apply to debt reduction. ccording to which debts you feel are the highest priority to pay off first. priority debts as you see fit. d shown highlighted in orange. Like this! ets included in this spreadsheet. Simply fill in the input cells appropriately. ocument responses to the Case Study questions, to your instructor using the Dropbox by the end tab below. sheet's formulas and prevent you from completing your analysis. need to fill in every input cell. g the Dropbox by the end of the Workshop. Debt Schedule Debt Title Current Balance Annual Interest Due ($) Rate (%) Minimum Monthly Payment ($) Debt Repayment Plan Instructions for this sheet: Decide first how much extra you are able to pay each month to reduce your debts. You can use your previous spending plan as guidance. You can also choose to spread this p Then you should place your debts in the order in which you want to pay them off. You can do this in three different ways: (1) You could pay them off from the smallest debt to the largest debt. This method has an important psychological effect. It gives you the fastest sense of accomplishment and encourages you to continue. (2) You could pay them off starting with the highest interest rate debt. This method saves you the most money in interest. (3) You choose your own order based on other priorities. For instance, you could start by paying off the debt that is causing you the most str Some people choose to start with the debt that has the highest monthly payment. Finally, spread your extra montly payment across your chosen debts. Extra Monthly Payment: Order Debt Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 All Initial Balance Annual Interest Due ($) Rate (%) $0.00 The Debt Snowball! Note this template does not show a full debt snowball. This is a common debt-reduction technique whereby: (1) You pay the minimum payment on all but your highest priority debt. (2) You apply your entire extra payment to this highest priority debt until it is paid off. (3) Once this debt is paid off, you apply its minimum payment plus the extra payment (4) This allows debt payments to "snowball." As each debt is paid off, the money save This technique leads to the quickest reduction in debt and highest savings overall, but takes h to reduce your debts. can also choose to spread this payment across multiple debts. want to pay them off. the largest debt. and encourages you to continue. nterest rate debt. bt that is causing you the most stress. as the highest monthly payment. Minimum Monthly Extra Monthly Baseline Months New Remaining Months Payment ($) Payment ($) until Payoff Months until Payoff Saved 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0.00 $0.00 0 0 0 ghest priority debt. st priority debt until it is paid off. payment plus the extra payment to your next highest priority debt. h debt is paid off, the money saved is applied to the next. ighest savings overall, but takes long-term discipline until all debts are gone. Amount of Money Saved ($) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00