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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

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

********************************************************************************************************************************************************************************

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)

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