I need a conclusion for this case study

SMART Goals and Debt Repayment

INSTRUCTIONS You have been asked to give friends of yours some advice. Jack works at WaterCare making $45,000 per annum before tax and KiwiSaver. Jill is an account rep making $85,000 per annum before tax and KiwiSaver. Both are happy to admit that they are awful at managing their money and the consequence is that they do not have a lot of savings. They have also recently witnessed the consequences of a friend losing their job. This has scared them into realising that they need some money advice, urgently. A colleague of yours has been working with them on tracking their spending and preparing a budget. The couple has agreed to get rid of their old car as it has no real value, a move expected to halve car costs including petrol, but will result in one of the couple needing to use public transport. They have agreed to buy cheaper foods and reduce their entertainment and incidental expenses. They have come up with the following per month budget

Income	current situation	propose budget
Jack jill	5404.04 3155.79	5404.04 3155.04
Total income Expenses car loan CC1 CC2 Laptop appliances personal loan mortgage car maintenance petrol transport food utilities land rates insurances entertainment incidents Total Expenses net saving	8559.83 594.09 45 315 90 150 417.08 3293.45 163.17 433.33 0 650 470 200 260 450 1000 8531.123 28.70667	8559.83 594.09 45 315 90 150 417.08 3293.45 80 220 120 450 470 200 260 300 500 7504.62 1055.21

Your colleague has expressed real concern about the couples debts and has asked you to devise a plan to reduce the debt.

The couples debts are as follows:

A car loan with Dodgy A.F. Car Loans. This is currently at $25,000 with a 14.95% interest rate that they are repaying over 5 years. Two credit cards: 1. The first with AussieBank. It has a current balance of $1,500 and is incurring interest of 20.95%. 2. The second credit card is with New Zealand and Australia Bank and has a balance of $10,500. It is also incurring interest at 20.95%. Both credit cards are being repaid at the minimum rate.

The couple bought a house 5 years ago and are paying down a mortgage which is currently at $592,000. They have this fixed at 4.5% indefinitely and has 25 years left on it.

The couple have two hire purchase agreements with UnHoly Finance. Both were purchased one year ago on 12 months interest free, with no repayments for 12 months. The first hire purchase was for a $3,000 laptop and the second was for new appliances of $5,000. They come with a 25.99% interest rate and the couple are about to begin making minimum repayments (as reflected in their budgets current situation).

Finally, for their 10-year wedding anniversary the couple decided to take a holiday. They paid for this by borrowing from their bank at 14.95%. The personal loan has $15,000 left on it and 5 more years left on the repayments.

The couples savings are as follows:

The couple have also noted that they have KiwiSaver but that they cannot access it as they are not in a financial hardship situation, and they have $4,000 in savings. They need help!

Tasks: 1. Set at least one SMART goal for the couple to be debt free. For each SMART goal state one or more objectives to attain the goal (Hint: review lecture slides on setting SMART goals and objectives). 2. Using the information supplied in the case, devise a financial plan to repay these debts. This plan must be aligned with the SMART goal(s) set above. You should prioritise the debts in terms of the order they should be repaid. A complete answer will also outline how long it will take the couple to repay their debts. Are there ways to reduce the interest rate on some or all the debts? [Debt consolidation is feasible in this case