You are to assume the role of a loan officer at Trust Bank. A customer has asked you to explain why certain loans are justifiable and others are not.
The customer has a job earning $50,000/year and only has rent and utilities as expenses. The customer has $20,000 in savings.
The customer has inquired about loans. The customer wants to purchase a house and would need to finance a $200,000 mortgage. The customer wants to purchase a vehicle and would need a $30,000 loan for payment. The customer is also interested in a $1,000 personal loan for a vacation.
You must explain which loans are justifiable and which are not. You must also explain which loans may require a down payment and how failing to repay loans can negatively impact the customer’s finances.