https://docs.google.com/document/d/1yP_ClB09inWk8-N2bnKIEtQfPzZ086JhrKkXihUEf-k/edit?usp=sharing

NGPF Project Bank
Managing Credit #4
Part I: Review this information about Madison                                
    Madison’s Profile:
· 23 years old
· Fortunate to have a credit history going back 7 years, first as an authorized user on her mom’s credit card, then a cosigned credit when she started college, and a store credit card when she turned 21
· Was living with her dad, rent-free, before she got the job. Had to move 1.5 hours from home into an apartment shared with another friend in order to make the commute to work manageable
· Grandma was so excited Madison graduated from college, that she gave her a $3000 down payment for a hybrid car, which Madison bought a few months back. She’s only made 2 payments so far, but she loves the car and it’s great on gas.
· Is aware of how important it is to maintain a good credit score, so doesn’t want to fall behind on any payments
· Has decided to stop spending on her credit card until she’s got her debts paid down
· Has only $200 in her savings account and no other options for an “emergency”
· Knows she should participate in her company’s 401(k), because they’ll match her contributions up to $3000
· Doesn’t mind living with her friend right now, but someday wants more privacy, either in a rental or maybe a condo she could buy
Madison’s Monthly Cash Flows
Review Done it is correct
Part II: Review Madison’s statements for her outstanding debts
AUTO LOAN
FEDERAL STUDENT LOANS
CREDIT CARD
STORE CARD
Review Done it is correct
Part III: Brainstorm debt relief strategies for Madison
Work with others from your class (your teacher will tell you how big the group can be) to brainstorm some “next steps” for Madison so that she can manage her debt responsibly AND meet some/all of the goals she’s stated in her profile in Part I.
Possible questions to think about/discuss:
· How much total debt does Madison have? How does her debt compare to her monthly take-home pay?
Her Monthly Take home is $ 3390
Total Debt = $ 485 +$ 311 +$ 25 = $ 821
· What is the balance, the interest rate, and the term on each of her debts? Are some more important, more costly, easier to tackle than others?
Auto Loan
Original Loan Amount $ 21970
Interest Rate = 2.90 %
Term...