Question #1
Shelby can reduce her credit card debt by alternative use of cash in paying off the credit cards. This ensures that she gets enough and available credit for the condo down payment and the wedding. It as well raises her credit card score based on her ability to pay off her accumulated debts. Besides, she has the option of reducing her level of purchase and stop buying what she cannot afford in cash. Successfully limiting her budget through elimination of side items and adopting the idea of cash budgeting enables her to pay for her card credit immediately after use. This is as well important in reducing her rate of overspending and greatly improves her credit score.
Question #2
Mark and Shelby can become aware of the impacts of their debts on the credit card on both their long-term and current situations by ensuring getting and evaluating their credit report to ensure clear planning of their budget for the month. It is as well important for them to visit a credit counselor to guide them on their overall spending and the significance of keeping their spending under control. Additionally, they can approach a bank loan officer to advise and explain to them what they can afford based on their current situation of spending habits (Ivonin et al, 2016). Alternatively, Mark and Shelby can seek the services of a financial adviser. Although the financial adviser should advise and help them take care of their finances, they must be careful enough to determine who they should trust with their personal financial matters. This involves a lot of inquiry into their reputation, their background, education, and experience before hiring them to establish the trust between them and the financial planner.
Delegate your assignment to our experts and they will do the rest.
Question #3
The usage of a credit card is intended to create a record of the current balances of an individual based on their debt balances (Gudmunson et al, 2015). The personal financial planner sheet 29 or rather the consumer credit usage patterns is quite important for both Shelby and Mark in the sense that enables them to clearly understand and record their financial data to keep in check balances of their credit card. Additionally, it is an important tool in the calculation of the ratio of debt payment in relation to the income as well as the ratio of debt and equity of her balances which is essential in understanding their future and current financial situation.
References
Gudmunson, C. G., Zuiker, V. S., Katras, M. J., & Sabri, M. F. (2015). Enhancing Personal And Family Finance Courses Using Case Studies. College Student Journal , 49 (3), 321-330.
Ivonin, L., Perry, M., & Subramanian, S. (2016). The Art Of Spending And Recommendations In Personal Finance. CEUR Workshop Proceedings.
