Liability Worksheets
Once you have calculated your assets
you will know how much you own.
Now you need to calculate how much
you owe.
Subtracting how much you owe from what you own will determine your net worth. The net worth can then be used to determine
approximately how much you can afford to contribute to your children’s college
education from your assets.
The following Parent Liabilities
Worksheet is designed to give you a picture of the your debt position.
Believe it or not, there is good
debt and bad debt and most families do not understand that concept.
A home
equity loan is considered good debt, because homes appreciate in
value and provide the owners with a tax deduction.
On the other hand, credit card debt is considered bad debt because individuals are paying
high interest rate finance charges for the privilege of using the credit
card.
Therefore, if you are carrying a high
balance on your credit cards, you are actually paying more than the retail
value for the goods you purchased.
The data from the following liability worksheets will
allow you to review your current debt situation.
PARENT’S LIABILITY SHEET
Credit Card Balances $
__________
Income Tax Payable But Not Yet Paid $
__________
Miscellaneous Accounts Payable
(Including personal loans to other individuals) $ __________
Personal Bank Loans $
__________
Loans Against Life Insurance Policies $ __________
Loans Against 401K Pension Funds $ __________
Automobile Loans $
__________
Student Loans (parents only, i.e., Plus Loan, etc.) $ __________
Mortgage on Primary Residence $
__________
Second Mortgage on Primary Residence
Or Equity Line of Credit Debt $ __________
Mortgage on Second Home or
Houseboat on Equity Line of Credit $ __________
First Mortgage on Rental Real Estate $
__________
Second Mortgage or Equity Line of Credit
On Rental Real Estate $
__________
Bank Loans on Boat and RVs
(Other than houseboat) $
__________
Broker’s Margin Loans $
__________
Limited Partnership Debts $
__________
Loan from Employer $
__________
Other Liabilities $
__________
$
__________
$
__________
TOTAL LIABILITIES: $
__________
After you have completed this worksheet, make sure you
did not leave anything out.
0 comments:
Post a Comment