Consumer Credit Case Information- You can refer back to this page throughout your time completing your case

Today Brad and Angie Smith have made an appointment to see you. They are here today to see about getting a loan to consolidate their credit card debt, which seems to have gotten out of hand. Both Brad and Angie Smith have brought in their current paystubs. Through your conversation you find out the Brad and Angie met at NAIT where you attended as well. They have been married for a little more than 2 years. Both are busy with work and trying to keep up on the renovations that they started when they bought their fixer upper. Brad is first to admit that they are embarrassed by their use of credit cards, but the house needed a lot of renovations and upgrades since they moved in something that they had not figured into the cost of owning a home. Brad notes that they recently were approved for a $5000 Costco credit card, it was a great deal and he couldn't pass it up, they haven't used it yet though.The Smith's have provided the following information, you have collected and input into a net worth statement you have completed:

ASSETS	AMOUNT	LIABILITIES	BALANCE Owing	PAYMENTS
Real Estate Value	422000	Mortgage (s)NAITBANK TAXES 150 HEAT 175	402,194	2001.57
Vehicle 2017 Ford F150	25000	Loans STUDENT@P+3%	3034	225
Vehicle 2008 Pontiac Grand Prix	6000	GMAC loan	14713	315.25
Chequing account	1,000	RBC VISA limit 3000	2575
RRSP	5,000	PC FINANCIAL MASTERCARD limit 5000	4502
Mutual Funds	3,000	Costco Credit Card Limit $5000	0
Jewellery	$30,000
TOTAL ASSETS		TOTAL LIABILITIES
NET WORTH

FN 03-01587950-23-854-UN 0897651124 03/05/2015

Identification

Name: Smith, Brad

Current Address: 1234 West Blvd Edmonton, AB T5T E2G

Date of Birth: 00/00/00

Spouse Pitt, Angie

Beacon: 685

Inquiries

Date	Member No	Member Name	Telephone
06/02/2014	001BB98852	CIBC	(800) 831-2125
09/02/20014	001BB45832	Scotia	(800) 883-1809

Employment

Current Employer: Credit Mgr EPCOR 15/31/2013

2010 Student NAIT

ES- TELUS

Summary

Pub Records	Trade Oldest-Newest	Total	High Credit	Rating

Trade Information

Member Trades:

Bus/ID Code	pmt	Rptd	Opnd	HC	Bal	Rt	30/60/90
RBC VISA		12/2019	06/2009	4500	4502	R1	00 00 00
NAITLAB	225	12/2019	09/2011	11638	3034	I1	00 00 00
PC FINANCIAL MASTERCARD		12/2019	09/2009	1500	0	R1	01 00 00
GMAC Finance	315	12/2019	08/2012	16713	14713	I1	00 00 00

End of report

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FN 03-01587950-23-854-UN 0897651124 03/05/2015

Identification

Name: Smith, Angie

Current Address1234 West Blvd Edmonton, AB T5T E2G

Date of Birth: 00/00/91

S Smith, Brad

Beacon : 702

Inquiries

Date

Member No

Member Name

Telephone

Employment

Current Employer: TELUS 15/12/2012

2010 Student NAIT

ES EPCOR

Summary

Pub Records	Trade Oldest-Newest	Total	High Credit	Rating

Trade Information

Member Trades:

Bus/ID Code	pmt	Rptd	Opnd	HC	Bal	Rt	30/60/90
NAITLAB	225	09/2019	09/2011	11638	3034	I1	00 00 00
RBC VISA		11/2019	06/2009	4500	4502	R1	00 00 00

Please solve

1.

As a Financial Advisor, what recommendations do you have for the Smith's to improve their overall financial position:

(List a minimum of three recommendations)

2. Question

Credit Decision What is your final decision on the loan request? Approve/Decline/Modified If approved or modified, you must show the Principal amount, the term and the interest rate. (1 marks)

2. Justify your decision. In your decision remember to defend your position using your analysis of the 5C's.(8 marks)