Jamie Lee Jackson, age $27,$ full$-$time student and part$-$time bakery employee, has just moved into a bungalow$-$style, unfurnished home of her own. The house has only one bedroom, but the rent is manageable and it has plenty of room for Jamie Lee. She decided to give notice to her roommate that she would be leaving the apartment and the shared expenses after the incident with the stolen checkbook and credit cards a few weeks back. Jamie Lee had to dip into her emergency savings account to help cover the deposit and moving expenses because she had not planned to move out of the apartment and be on her own this soon.

Jamie Lee is in need of a few appliances, as there is a small laundry room but no washer or dryer, nor is there a refrigerator in the kitchen. She will also need a living room set and television because she had only a bedroom set to move in with. Jamie is so excited to finally have the say in how she will furnish her home, and she began shopping for it as soon as the lease was signed.

The home appliance store was the first stop, where Jamie Lee chose a stacking washer and dryer set that would fit comfortably in the laundry space provided. A stainless steel refrigerator with a built$-$in television screen was her next choice, and the salesperson quickly began to write up the order. She informed Jamie Lee that if she opened up a credit card through the appliance store, she would receive a discount of $10$ percent off her total purchase. As she waited for her credit to be approved, Jamie Lee decided to continue shopping for her other needed items.

Living room furniture was next on the list. Jamie Lee went to a local retailer who offered seemingly endless choices of complete sofa sets that included the coffee and end tables as well as matching lamps. She chose a contemporary$-$style set and again was offered the tempting deal of opening a credit card through the store in exchange for a percentage off her purchase and free delivery.

Jamie Lee$$s last stop was the local big box retailer, where she chose a $52-$inch $1080$p LED HDTV$.$ For the third time, a percentage off her first purchase at the big$-$box retailer was all that was needed to get Jamie Lee to sign on the dotted line of the credit card application. page $201$She was daydreaming of how wonderful her new home would look when a call from the appliance store came through asking her to return to the store.

Jamie Lee received the unfortunate news that her credit application at the appliance store had been denied. She left the store only to be greeted at the next two stores where she had chosen the living room set and television with the same bad news: credit application denied! She was informed that her credit score was too low for approval. $$How could this be$?$ Jamie Lee wondered and immediately contacted the credit bureau for further explanation.

Current Financial Situation

Assets:

Checking account, $$1,800$

Savings account, $$7,200$

Emergency fund savings account, $$2,700$

IRA balance, $$410$

Car, $$2,800$

Liabilities:

Student loan balance, $$10,800($Jamie Lee is still a full$-$time student, so no payments are required on the loan until after graduation.$)$

Credit card balance, $$4,250($total of three store credit cards$)$

Income:

Gross monthly salary from the bakery, $$2,750($net income, $$2,175)$

Monthly Expenses:

Rent, $$350$

Utilities, $$70$

Food, $$125$

Gas$/$Maintenance$,$ $$130$

Credit card payment, $$0$

Questions

$1.$ What steps should Jamie Lee take to discover the reason for the denial of her credit applications?

$2.$ Jamie Lee discovers that she has become the victim of identity theft, as her credit report indicates that two credit cards have been opened in her name without her authorization! The police had already been notified the evening of the theft incident in the apartment, but what other measures should Jamie Lee take now that she has become aware of the identity theft?

$3.$ Fortunately for Jamie Lee, she was able to show proof of the theft to the credit bureau, and her credit applications for her home furnishings were approved. The purchase total for the appliances, living room furniture, and television amounted to $$4,250.$ The minimum payments among the three accounts total $$325$ a month. What is Jamie Lee$$s debt payments$-$to$-$income ratio?

$4.$ Oh$,$ no$!$ The television was finally delivered today but was left on the porch by the delivery company. When Jamie Lee was finally able to attach all the wires and cables according to the owner$$s manual, it played for half an hour and then shut off. Jamie Lee was unable to get the television to turn back on$,$ although she read the troubleshooting guide in the manual and contacted the manufacturer$$s tech support. Jamie Lee lugged the television back to the store, but they would not accept a return on electronics. What should Jamie Lee do now?