Identify and analyze your debts. What assets secure your debts? What assets do your debts finance?...

Identify and analyze your debts. What assets secure your debts? What assets do your debts finance? What is the cost of your debts? What determined those costs? What risks do you undertake by being in debt? How can being in debt help you build wealth?

Expert Solution

Presently, I have the following debt

Debt Type	Debt outstanding	Interest rate	Tenure (years)
Student loan	$40,000	4.50%	10
Car loan	$20,000	4.00%	5

The assets which secure the debts are the car for the car loan and my car which is currently valued at ~ $20,000. For the student loan, the collateral is guarantee provided by my father against his net worth.

The assets financed by dent are the car and my college education. The cost of the debts are determined by the tenure of the debt and also the collateral which is available to secure the debt.

The risks that I undertake by being in debt are:-

Not able to save enough to meet my financial goals
Large amount paid to repay the debt and consequently being forced to work in a job not liked by me but necessary to repay the loan

Being in debt is counterproductive for the creation of wealth as this works as negative compounding with the bank earning interest at our expense instead of us investing and earning interest.

jeff jeffy answered 1 year ago

a secure loan requires that the borrower pledge specific assets to secure the loan. these assets...

a secure loan requires that the borrower pledge specific assets to secure the loan. these assets are called: asset requirements intangible assets negotiable assets collateral pledges

This is the scenario: David has debts of $18,000 and few assets. Because his debts are...

This is the scenario: David has debts of $18,000 and few assets. Because his debts are less than $25,000, he decides to file for bankruptcy using the state court system rather than the federal system. Briefly describe the procedure he should follow to file for bankruptcy at the state level. Now asume that David is irregularly employed and has developed a plan for paying off his creditors. What type of bankruptcy should he use, Chapter 7, 11, or 13 and...

This an International Finance Course Analyze government programs to finance exports. Your response should be at...

***This an International Finance Course*** Analyze government programs to finance exports. Your response should be at lest 200 words in length.

How do family and culture influence your attachment style( secure) ?

What is the importance of the capital asset pricing model in finance? In your answer, identify...

What is the importance of the capital asset pricing model in finance? In your answer, identify what might be the best proxy for (1) the risk-free rate and (2) the market rate of return. HTML EditorKeyboard Shortcuts

Under what circumstances would a business secure its financing through a commercial finance company?

what can you do of your identify is stolen?

Make a Risk Management Plan for your Valuable IT Assets at Home . a. Identify Assets...

Make a Risk Management Plan for your Valuable IT Assets at Home . a. Identify Assets and their Value, Classify, Prioritize them b. Identify Threats and Priorities c. Specify Asset Vulnerabilities d. Calculate Risk (show all calculations) e. Select Control Strategies for Mitigating, Treating and Reducing Risk You would be submitting following documents as outcomes of your activity. Each document has 5 marks. a. Information Asset Classification Worksheet b. Weighted Factor Analysis Worksheet c. TVA Spreadsheet d. Ranked Vulnerability Risk...

this is a International Finance Course Analyze tax treaties and purposes. Your response should be at...

***this is a International Finance Course*** Analyze tax treaties and purposes. Your response should be at least 200 words in length.

what we should do to protect and secure Web Site and Web Application

Question