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 is only a one- bedroom, but the rent is manageable and 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 had to dip in to her emergency savings account to help cover the deposit and moving expenses, as she had not planned to move out of the apartment and be on her own this soon.

Jamie 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 a television because the only furniture she currently has is a bedroom suite. Jamie is so excited to finally have the say in how she will furnish the bungalow, and she began shopping for her home as soon as the lease was signed.

The home appliance store, Acme Home Goods, was the first stop as Jamie chose a stacking washer and dryer set, which would fit comfortably in the laundry space provided. A stainless steel refrigerator was her next choice, and the salesperson quickly began to write up the order. Jamie was informed that if she opened up a credit card through the appliance store that she would receive a discount of 10% off

her total purchase. As she waited for her credit to be approved, she decided to continue shopping for her other needed items.

Living room furniture was next on the list as Jamie went to the local home furnishings retailer who had endless choices of complete sofa sets that included the coffee and end tables as well as matching lamps. Jamie 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. On to the big box retailer where Jamie then chose a 52 1080p 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 to sign on the dotted line of the credit card application.

Jamie Lee wants to determine if she can afford the monthly payments for all of her purchases before she completes the application process. Use the information below to determine her debt payment-to-income ratio.

Current Financial Situation

Assets: Income:

Checking account $1,800

Gross monthly salary $2,750

Savings account $7,200

Net income $2,175

Emergency fund savings account $2,700 Monthly Expenses: IRA balance $410 Rent obligation $350

Car $2,800

Utilities/Electric $70

Liabilities: Utilities/Water $40

Student loan $10,800 Utilities/Cable $65

(Jamie is still a full-time student, so no payments are required on the loan until after graduation) Food $125

Gas/Maintenance $130

Credit card payment $0

question:

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

2. Jamie has become a victim of identity theft. Fortunately, jamie was able to show proof of the theift to the credit card bureau and the credit applications for her apartment furnishings were approved. The total amount for her appliances was: $4250. The minimum amount payments of the three total accounts is 325 a month. WHAT IS JAMIE LEES DEBT PAYMENT-to-income ratio?

3. OH NO! Jamie's TV finally came in. Unfortunately, the delivery people left it on the porch. when Jamie was able to attach the wires and cables according to the owners manual the TV worked for half of an hour and then shut off. she called the companies tech support and she also trouble shotted the tv but nothing worked. Never to work again! Jamie took the Tv back to the store and they will not except returns of electronics. What should Jamie do?

4. Jamie Lee now has to juggle three monthly credit card bills from where she purshed her home Furnishings. she is interested in getting a loan to consolidate the three store consumer credit cards so she may make a single payment on goods per month. using your personal finance sheet compare consumer loan options that Jamie may consider. what are your recommendations for her to consolidate her To consolidate her monthly consumer charge bills?