Question

First, total the liabilities for the Year One column and the total liabilities for Year Two column. Then calculate the percentage increase or decrease in each liability category, and total liabilities, compared to the values from the prior year. Enter the percentage increase or decrease in the table below, in the column labeled Percent Change. You may use the online calculator. Round your percentages one place to the right of the decimal point (to the nearest tenth).

Percentage Change: Year One to Year Two
Liabilities	Amount Year One	Amount Year Two	Percent Change
Home Mortgage	$113,000	$109,100	1a.
Student Loan	$8,000	$6,450	1b.
Auto Loan	$3,300	$1,950	1c.
Credit Card	$4,500	$9,100	1d.
Personal Loan	$2,500	$1,950	1e.
Total Liabilities	1g.	1h.	1f.

2.

Provide three examples of how the debt of the household has changed.

2a.

2b.

2c.

3.

What are two steps this household can make to help manage this debt?

3a.

3b.

4.

The household members decide they need some assistance in managing their debt. According to the Resource, what are two steps they can take to choose a reliable organization?

4a.

4b.

Answer 1

1.)
Percentage Change: Year One to Year Two
Liabilities	Amount Year One	Amount Year Two	Percent Change
Home Mortgage	$113,000	$109,100	-3.5%
Student Loan	$8,000	$6,450	-19.4%
Auto Loan	$3,300	$1,950	-40.9%
Credit Card	$4,500	$9,100	102.2%
Personal Loan	$2,500	$1,950	-22.0%
Total Liabilities	$131,300	$128,550	-2.1%
2.)
Three Examples of how the Debt of Household has Changed are:-
a.) The Home Loan has Reduced by 3.5% and the amount of reduction was $3900
b.) The Credit Card Loan has increased by 102.2% and the amount was $4,600.00
c.) The Auto Loan has reduced by $1,350 and 40.9%
3.)
a.) As the Credit card attracts higher rate of interest than Household, first the Credit
Card amount should be Paid then the Household
b.) As the Personal Loan has higherinterest therefore first Personal Loan should be repaid
of other Loans.
4.)
a.) Past Perfomance of the Organization to be chosen
b.) Amount of Experience that organization holds.