Effect of taking on a loan

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Reference no: EM133076540

What Do You Recommend?

Carrie Savarin, age 25, is a nurse practitioner with the local health department. She earns $50,000 per year, with about $4000 of her income coming from overtime pay. Her employerprovides a qualified tax-sheltered retirement plan to which Carrie contributes 4 percent of her salary and for which she receives an additional 4 percent matching contribution fromher employer. (She could contribute up to 6 percent with an equal employer match.) Carrie has $19,000 in outstanding student loans on which she will pay $354 per month overthe next five years, and her total credit card debt is $3000. Otherwise, she is debt free. Carrie would like to purchase a new or late-model used car to replace the car she hasbeen driving since her senior year in high school. She has $2000 to use as a down payment. What would you recommend to Carrie on the subject of building and maintaining goodcredit regarding.

1. Factors she should consider regarding her ability to take on additional debt?

2. The impact of her current debt on her ability to obtain a loan to buy a vehicle?

3. Where she might obtain financing for a vehicle loan?4. The effect of taking on a loan on her overall financial planning?

Reference no: EM133076540

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