12/13/2019 0 Comments
Financial planning cover letter - Essay Example
Your current debts include your truck loan of $25,000, car loan of $18,000, credit card balances of $2,100 and student loan balances of $8,000. Considering your cash inflow and expenses it is possible to repay all the debts in a period of four years by paying $112.74 instead of the current $91.92 in Mikeâ€™s Student loan, $67.64 instead of the current $55.15 on Debbieâ€™s student loan, paying 64.08 instead of the minimum $58.63 on the credit cards and maintaining the current payments on the truck and car monthly payments. To repay the debts in 4 years you will have to pay a total of $1243.50 per month.
Considering the minimum debt payment rates, you are currently incurring a cost of $1243.50 per month given the high interest rates on your debts, that is, 4% on student loans, 19% on both credit cards, 6.5% on the truck loan and 9.5% on the car loan. A consolidated loan would have a lower interest rate and would cost you $1,245.53 per month and hence result in a $38.53 savings per month and hence it would be advisable to take the consolidated loan and pay for all your debts since this will enable you save more money. It will also cost you less in 4 years paying for the loan as compared to your current debts.
Another strategy in meeting your goals will be to reduce your expenses on Internet, clothing, entertainment, restaurant, and miscellaneous expenses. From the revised cashflow you can easily see the new recommended rates on the above expenses where savings of; $250 are made on clothes, $425 on entertainment, $105 on restaurant and $175.42 on miscellaneous expenses resulting to $955.42 savings per month.
The new debt payments system and the savings on expenses will enable you meet your goal of paying RESP for your son amounting to $210, save $400, Pay a life insurance policy of $250, and pay an emergency fund of $156.39 monthly.
I therefore gladly inform you that it is possible to meet your financial goals, of paying your existing
Write something about yourself. No need to be fancy, just an overview.