The Debt Snowball: Devon has learned that the Debt Snowball is a good way to pay her debts off because it starts with paying off the loan with the smallest outstanding balance first and then rolls the payment she was making for the first, smallest debt, into the next biggest outstanding balance amount (and so forth) from smallest to largest. This method works well because she sees her progress the snowball accumulates toward her larger debts, paying them down faster and faster. Use the excel spreadsheet calculator to set up a debt snowball for Devon's debts. Devon has the following debts: a credit card with a balance of $1500, a minimum payment of $17, and a 14% interest rate medical debt with a balance of $8,200, a minimum payment of $85, and an interest rate of 0% a student loan with a balance of $5,500, a minimum payment of $75, and an interest rate of 4.0% a second student loan with a balance of $4,000, a minimum payment of S60, and an interest rate of 5.3% and a car loan with a balance of $14,000, a minimum payment of $180, and an interest rate of 3%. She can pay $200 extra per month and has $1,000 to contribute as her start up payment. 1. How many months until Devon is out of debt? 2. Add another loan to Devon's scenario. a. What are the particulars of the loan? b. How long will it now take her to pay off her loans? 3. Adjust the amounts up and down that she can pay in extra payments every month, What do those change do, in terms of timing? FNLT101 Debt Snowball Scenario Worksheet Accessibility: Investigate o te @ * N1 e 9 4. Adjust the amount up and down that she can contribute as her start up payment. What does those changes do, in terms of timing? 5. Which seems to help more, a bigger starting payment or contributing more money each month? FNLT101 Debt Snowball Scenario Worksheet W Focus Owe (Debt and Taxes) Assignment Name: Your assignment includes creating a debt snowball and analyzing a pay stub for a fictional student named Devon. Devon has a lot of debt, but she has a job 25 hours a week as a tutor and it pays her $18/hour. Using her income, she is working on paying off her loans. Part A: Paystub Analysis Review Devon's pay stub from "Tutors for America" on the following page. Answer the questions: How much has Devon paid in taxes this pay period? What about for the year? What types of taxes does she pay? What is her gross income for the year, if she earns this amount every other week, except for two weeks of vacation this year? What will her net income be for the year? Using the internet, determine what tax bracket Devon is in. Tutors of America October 31, 2019 Pay Three Hundred Forty-nine And Ten Cents $ 349.10 Pay to the order of Devon Davis 1234 Liberty Way Lynchburg, VA 55555 Company Information Tutors of America Earnings Statement Employee wimation Em D Start Date In bele Check Date XXX-XX-0000 Devon Davis 1234 Liberty Way Lynchburg, VA 55555 45823 10/15/2019 10/28/2019 10/31/2019 tang Rale Hours Current Year to date Dedictions Regular Camings 18.00 25.00 450.00 30 690 00 Federal Tax 2.13793 1,395 41 Sex Sec / OASDI 450.00 30.690.00 100.90 6 881 13 Check Me $349.10 YTD Met Pay $23,808.87 FNLT101 Debt Snowball Scenario Worksheet The Debt Snowball: Devon has learned that the Debt Snowball is a good way to pay her debts off because it starts with paying off the loan with the smallest outstanding balance first and then rolls the payment she was making for the first, smallest debt, into the next biggest outstanding balance amount (and so forth) from smallest to largest. This method works well because she sees her progress the snowball accumulates toward her larger debts, paying them down faster and faster. Use the excel spreadsheet calculator to set up a debt snowball for Devon's debts. Devon has the following debts: a credit card with a balance of $1500, a minimum payment of $17, and a 14% interest rate medical debt with a balance of $8,200, a minimum payment of $85, and an interest rate of 0% a student loan with a balance of $5,500, a minimum payment of $75, and an interest rate of 4.0% a second student loan with a balance of $4,000, a minimum payment of S60, and an interest rate of 5.3% and a car loan with a balance of $14,000, a minimum payment of $180, and an interest rate of 3%. She can pay $200 extra per month and has $1,000 to contribute as her start up payment. 1. How many months until Devon is out of debt? 2. Add another loan to Devon's scenario. a. What are the particulars of the loan? b. How long will it now take her to pay off her loans? 3. Adjust the amounts up and down that she can pay in extra payments every month, What do those change do, in terms of timing? FNLT101 Debt Snowball Scenario Worksheet Accessibility: Investigate o te @ * N1 e 9 4. Adjust the amount up and down that she can contribute as her start up payment. What does those changes do, in terms of timing? 5. Which seems to help more, a bigger starting payment or contributing more money each month? FNLT101 Debt Snowball Scenario Worksheet W Focus Owe (Debt and Taxes) Assignment Name: Your assignment includes creating a debt snowball and analyzing a pay stub for a fictional student named Devon. Devon has a lot of debt, but she has a job 25 hours a week as a tutor and it pays her $18/hour. Using her income, she is working on paying off her loans. Part A: Paystub Analysis Review Devon's pay stub from "Tutors for America" on the following page. Answer the questions: How much has Devon paid in taxes this pay period? What about for the year? What types of taxes does she pay? What is her gross income for the year, if she earns this amount every other week, except for two weeks of vacation this year? What will her net income be for the year? Using the internet, determine what tax bracket Devon is in. Tutors of America October 31, 2019 Pay Three Hundred Forty-nine And Ten Cents $ 349.10 Pay to the order of Devon Davis 1234 Liberty Way Lynchburg, VA 55555 Company Information Tutors of America Earnings Statement Employee wimation Em D Start Date In bele Check Date XXX-XX-0000 Devon Davis 1234 Liberty Way Lynchburg, VA 55555 45823 10/15/2019 10/28/2019 10/31/2019 tang Rale Hours Current Year to date Dedictions Regular Camings 18.00 25.00 450.00 30 690 00 Federal Tax 2.13793 1,395 41 Sex Sec / OASDI 450.00 30.690.00 100.90 6 881 13 Check Me $349.10 YTD Met Pay $23,808.87 FNLT101 Debt Snowball Scenario Worksheet