SHORT ANSWER #2 PART ONE: (30 POINTS) Your close friends, Judy Thudpucker and her husband Jimmy-Jo Thudpucker are at your house watching TV. After a few minutes, Judy gets up, goes to the kitchen and starts crying. You ask her "What's wrong Judy?" She tells you that she and Jimmy-Jo have gotten into financial trouble. Between going to Disney, buying clothes and stuff for their two kids, plus Jimmy-Jo's new $42,000 truck on credit, they have $19,000 dollars in credit-card debt (Visa & American Express) PLUS the truck and house payments. Judy's car is paid off. Judy makes $11.50 per hour at Walmart ($23,500 per year) and Jimmy-Jo makes $18.50 an hour at the auto repair shop ($45,000 per year). They make $815.00 monthly payments to the bank on the house they bought four years ago for $186,000. Judy knows you are taking BA-303and needs your best advice. Make sure you (1) discuss/explain Judy & Jimmy-Jo's legal options + the status of Judy & Jimmy-Jo's various creditors (i.e. Visa, American-Express, Ford Motor Credit Co. for the truck, and Bank of Clark County for house payments).

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PART TWO: (30 POINTS): Judy also tells you that she and Jimmy-Jo don't have any Life Insurance either. Judy says they "really don't need and can't afford any life insurance" and that the "whole-life" policies a door-to-door salesperson showed us "are just too expensive." Give Judy your best advice about this also.

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