Solving Credit Problem Paper : Solving Debt Problem

935 WordsOct 5, 20154 Pages
Solving Credit Problem Paper Anna is facing a financial problem in which she does not have an adequate amount of money to pay her monthly expenses. Just when she is living paycheck to paycheck, she is given a huge unexpected expense to pay a mechanic to fix her car. The major downside is she needs her car fixed, there is no way around it, as her car is the only way to and from work. This big financial hiccup in her month is causing Anne to have major anxiety and worry about where she is going to find the money to still survive and pay her bills, while paying this huge unexpected expense. Anna has a monthly net income of $1,642. She will now need to pay her secured debt first. This includes her rent which is $550. Leaving her with $1,092 monthly net income left. Next she should pay her car payment because there is no reason to pay a mechanic if she does not even have a car to drive. A car loan is also considered secured debt because a creditor has the right to take it if you do not pay your debt. Therefore, she should pay $152 for her car payment, leaving her with $940. Because she is needing her car for transpiration to and from work she should also pay the $112 for auto insurance. This will leave her with $828. Paying family necessities should always be paid first. Therefore, she will need money for food and personal/ household items. Anna agreed to cut down on her expenses and only buy necessities. She agreed to not eat out and cook from scratch which will save her a lot
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