Personal Financial Planning Week 3 Discussion Questions (6)

Experts only! Scholarly responses are required.

*Please answer each question individually and accurately. Must cite any and all references in APA format. Label each solution with the corresponding question. Copy and pasted solutions will NOT be accepted. Minimum 2-3 quality paragraphs per question. See attached.

Personal Financial Planning Week 3 Discussion Questions (6) Experts only! Scholarly responses are required. *Please answer each question individually and accurately. Must cite any and all references in APA format. Label each solution with the corresponding question. Copy and pasted solutions will NOT be accepted. Minimum 2-3 quality paragraphs per question. Part A: 1. Using the Internet, locate a source that identifies the number of personal bankruptcies that have occurred in the United States during a relatively recent time period. Locate and report the results of Internet (or other) sources that assess the role played by credit card debt in relation to personal bankruptcies declared. What are the general conclusions regarding the effects of credit card debt upon bankruptcy filings? Do you believe that credit card debt is the only cause of bankruptcy? Are there any additional factors that can lead a consumer to make a personal bankruptcy decision? 2. What should you do if your identity is stolen? Please share examples! 3. Sometimes it is good to help a close friend or family member establish some credit. However, you need to do your due diligence. Not only do you need to find out the ability of the person to pay the loan, you need to assume the worst case scenario: what if the person cannot pay? Then you need to take over the payments. If you can't do it, you should not cosign. Do you agree? Part B: 1. As a proportion of your personal net worth (total assets minus total liabilities), identify the proportion of credit card debt you currently have outstanding (or have had outstanding at some point in your life). Identify the expenditures that have given rise to your credit card debt. Which expenditures were discretionary and which were not? Discuss the implications. Are there any strategies that you can implement in order to better manage and reduce credit card debt? What strategies have you used? 2. Explain one way to establish your credit and one way to protect your credit? What are some things you can do to improve poor credit? 3. Moving forward, let's work a problem on debt-to-income ratio. If you have the following: Monthly gross income = $5,000. Taxes = $1000 Social Security = $400 IRA = $100 Credit card payments = $1000 Car loan = $500 What would be your debt payments-to-income ratio