Discussion board #5: debt ratio

This exercise will demonstrate how the concepts we learned about the debt ratio in Chapter 9 can be used in a practical way to ascertain your own financial situation.

Consider the debt ratio, which is defined as Total Debt/Total Assets.

Watch the video regarding the increasing amount of student loans being assumed by college students:

Read this article on the man who found ways of paying down $87,000 of student loans within two years:

Post the following on the discussion board:

• Calculate your own personal Debt Ratio. You may use hypothetical numbers if you want to keep your actual information private.
• State whether you think this ratio is high or low.
• What things could you do to improve your personal debt ratio?
• What would be your ideal debt ratio 10 years from now?

State your thoughts on the print article:

• What do you think of this man’s actions to pay off debt quickly?
• Do you think he was being extreme or wise?
• Would it be hard for you to live in austerity like he did?
• What do you think he gained from his actions?

Comment on the video:

• What are your thoughts about the video on ballooning student debt across the country?
• Should students avoid student debt by either working their way through school or saving for college in advance?
• Do you think that is even a practical option?

Respond to two of your classmates’ postings with substantive comments. Note that only responding with merely a “yes” or “no” or “I agree/disagree” is insufficient unless you explain thoroughly WHY you feel that way.

Please note the due date on the link and turn in your response with plenty of time to spare, as system issues and other last-minute distractions are a way of life. No additional time will be granted if you miss the deadline.