4.2 debt

Timeline created by kelly107678
  • Tommy accumulates $10,000 in debt

  • Tommy seeks to get rid of his debt

    Tommy can go to a debt relief service. They help give advice and planning for paying off debt. He can also might be able to declare bankruptcy. That means he could receive a discharge not having to pay all of his debt. Bankruptcy is not the best because you'll have that record for the rest of your life (4.2 p8-9)
  • Budget

    To pay off debt you need to see how much money you take in vs how much you spend. Tommy makes a chart and puts things into three columns: income, fixed expenses, and other expenses (4.2 p8).
  • Chipping away at debt

    Tommy takes his total income then subtracts fixed expenses. Of the remaining amount, Tommy selects an amount to set aside to pay his debt. How long it takes Rommy to pay his debt depends on how much money he makes, how much his fixed expenses are, and how much of the rest of the money he sets aside (4.2 p8).
  • Period: to

    Paying off debt