Week 08 Application Activity: Debt Calculation



Week 08 Application Activity: Debt CalculationName: Click or tap here to enter your name.Do you have any debt? ?Yes ?NoPart 1: Debt Inventory ChartIn your Life Skill Lesson this week, you were asked to begin collecting and prioritizing any existing debt information you might have in preparation for this application activity. Follow the instructions below to begin. If you currently have no debt, skip to Part 3. Gather your debt information. If you currently carry any kind of debt (even if it’s just a mortgage or car payment), you will be creating your own personal debt inventory chart. If you have not already, please gather your debt information now. Download and open the Debt Inventory template. Fill out each column for every debt. Don’t use personal information, just come up with a nickname for each debt that you can easily recognize (e.g., Credit Card #1, Car Payment, Student Loan, etc.).Organize the debts on your chart in order of lowest balance to highest balance. This debt will become your top focus in the next step of this assignment (Debt Rollover Calculator).Save your chart to your computer.Part 2: Debt Rollover CalculatorIn the lesson this week, you also learned the power of the debt rollover method. You have now listed and prioritized all of your debts in order from lowest to highest balance, using your debt inventory chart. You are now ready to see how the debt rollover method can work for you. Please do the following:Go to the Provident Living Financial Calculators website, and click on the link titled “How soon could I pay off all my debts?” A window that looks like the picture below should appear.Insert your own debts from your Debt Inventory template into this calculator, including all minimum payments. Review your budget and decide if there is any additional money you can contribute to the minimum monthly payment of your priority debt (i.e., the one with the shortest payoff period). If you do have extra money to contribute, update it in the “Actual Payment” column next to the debt you want to pay off first. Scroll down to the “Assumptions” area and change the “Debt Ordering” to be “Shortest to Longest Payoff Period.” Review the graphs and take note of how quickly you can get out of debt and how much money you could possibly save. Part 3: Savings PlanNow that you have prioritized your debts and experimented with the debt rollover calculator, you will get to explore different savings options for your long-term financial plete the following:Review and consider your current or future savings/retirement savings options. Using your gathered information and your own budgeting information, determine how much you hope to contribute to your savings on a regular basis. Also, look at what the average return on it would be using your desired investment option.Plug your own information into this Savings Calculator template to see what your savings potential is.Part 4: Application Activity ReflectionAnswer the following reflective questions about the exercises you completed above. Save this revised document to your device.Reflective Questions:Debt Inventory and Rollover Calculator (if you currently have no debt, skip ahead to answer the questions about your Savings Plan):Did you fill out your debt inventory chart? ?Yes ?NoDid you organize it in order from lowest balance to highest balance? ?Yes ?NoDid you enter some of your debts from the debt inventory chart into the debt rollover calculator? ?Yes ?NoWhat is the most important thing you learned as a result of this activity? (Please write 1–2 complete sentences.) Click or tap here to enter text.What is one specific goal you would like to set for yourself after creating your debt inventory chart and exploring the debt rollover calculator? Click or tap here to enter text.Savings PlanDid you try out the savings calculator template linked in Part 3 above ?Yes ?NoWhat is the most important thing you learned as a result of this activity? (Please write at least 1–2 complete sentences.) Click or tap here to enter text.What is one specific goal you would like to set for yourself after creating your own savings plan? Click or tap here to enter text.Submission InstructionsFollow the instructions in your course to submit this document for grading and feedback. ................
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