My Debt Analysis Paper

1067 Words3 Pages

Introduction
Like the majority of Americans, my debt level is not good. My credit worthiness is only acceptable because of my consistent payment of monthly bills. However, when doing a solid debt analysis and comparing it with my credit character, I am not a good risk for most lenders.
Debt Analysis
My debts fall into three categories. The largest category is my credit card debt. It is not secured by any asset. And, as I have not used my credit cards wisely, for the most part, they have not financed any assets. Like most people, my revolving debt is not used to further my net worth (Kukk). They have financed meals and baseball tickets and clothing, but nothing that could be liquidated if the need arose. The one exception to that, is that a …show more content…

Tim Clue
Tim Clue is funny because he takes the real feeling of being crushed by debt and takes it to the absurd place of ignoring the debt. He focuses on soul crushing debt without consequences.
It isn’t funny, because it is a real dilemma in this country of people who are being utterly crushed by their debt. And that dilemma has led to a rise in predatory lending practices.
The appropriate use of debt, is that unless it is building wealth, there is none. Tim Clue focuses on using debt to live a life of want and make the kids pay for it. This isn’t just an issue of debt, but it highlights the larger social issues facing this nation as well.
Conclusion
When looking at my current debt levels and the categories of characterization, I am most likely a default risk. My credit history is great, but I am reaching the cap of what can be lent to me (Siegel). My character is good. And the Conditions are good. However, Capacity, Collateral, and Capital are not in my favor. I need to work on building assets while simultaneously reducing my overall

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