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please step by step INSTRUCTIONS Darren is in trouble. He is 18 years old and works as a retail assistant for $21.50 per hour full-time

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INSTRUCTIONS Darren is in trouble. He is 18 years old and works as a retail assistant for $21.50 per hour full-time ( 40 hours per week) in Sylvia Park. He is contributing 3% to KiwiSaver, mostly because he forgot to opt out. In the six months that he has been financially independent he has managed to incur the following debts: A $15,000 car loan with Dodgy A.F. Car loans. The loan has 4.5 years to go, and is incurring 19.95% interest. He is making monthly payments. The car is probably worth $10,000 now and he is adamant that selling the car is not an option. He bought an iPhoneX on plan 2 months ago. This is costing him $139.99 per month, over the next 22 months for the phone. Early payment comes with penalties. He has incurred $10,000 in credit card debt on a credit card charging 18.99% in interest. He has little in the way of tangible goods to show for this. Your colleague has pored over his financial transactions and outlined his current situation: Tasks: Based on the above information: 1. Create a financial plan to pay down his debts. Explain and justify the repayment strategy recommended. Clearly explain your plan and figures. [Debt consolidation is not an option in this case. You can make some assumptions where necessary.] 2. How long will it take to pay it all off? Clearly state the time period to clear all debt under your recommended repayment strategy. Show relevant calculations to illustrate your answers. Week 4 Case Study (Darren and debt repayments) Things to consider: - What debts should he focus on first? - What changes can he (realistically) make to his current spending to help with his debt repayments? - What changes should he make to his debt repayments? (HINT: he is currently repaying the minimum amount) - What assumptions are you making about Darren and his finances? INSTRUCTIONS Darren is in trouble. He is 18 years old and works as a retail assistant for $21.50 per hour full-time ( 40 hours per week) in Sylvia Park. He is contributing 3% to KiwiSaver, mostly because he forgot to opt out. In the six months that he has been financially independent he has managed to incur the following debts: A $15,000 car loan with Dodgy A.F. Car loans. The loan has 4.5 years to go, and is incurring 19.95% interest. He is making monthly payments. The car is probably worth $10,000 now and he is adamant that selling the car is not an option. He bought an iPhoneX on plan 2 months ago. This is costing him $139.99 per month, over the next 22 months for the phone. Early payment comes with penalties. He has incurred $10,000 in credit card debt on a credit card charging 18.99% in interest. He has little in the way of tangible goods to show for this. Your colleague has pored over his financial transactions and outlined his current situation: Tasks: Based on the above information: 1. Create a financial plan to pay down his debts. Explain and justify the repayment strategy recommended. Clearly explain your plan and figures. [Debt consolidation is not an option in this case. You can make some assumptions where necessary.] 2. How long will it take to pay it all off? Clearly state the time period to clear all debt under your recommended repayment strategy. Show relevant calculations to illustrate your answers. Week 4 Case Study (Darren and debt repayments) Things to consider: - What debts should he focus on first? - What changes can he (realistically) make to his current spending to help with his debt repayments? - What changes should he make to his debt repayments? (HINT: he is currently repaying the minimum amount) - What assumptions are you making about Darren and his finances

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