Interview
This document is a presentation of an interview conducted to Mr Joe, who was involved in an accident due to careless driving.He is a new employee at Grace Media house
Interviewer: Good afternoon, sir?
Mr Joe: Good afternoon to you.
Interviewer: Why are you walking in crutches?
Mr Joe: I was involved in an accident
Interviewer: how and where?
Mr Joe: I was driving from office to home when the worst happened
Interviewer: What exactly happened?
Mr Joe: I was not feeling well from work, so when I was driving, I became unconscious and hit a sharp bumb along the Glean road. That is where my car dashed into a ditch.
Interviewer: What other damages did you incur part from the injuries on your legs?
Mr Joe: My car was written off. I have no car at the moment now.
Interviewer: You mean it was this serious?
Mr Joe: Yes, it happened and I cannot recover anything from that car.
Interviewer: Am sorry for the loss and for the injuries you got. Can you recount to what lead to the accident?
Mr Joe: I only remember I was not feeling well, and I was over speeding at that moment.
Interviewer: What loses have you incurred as a result?
Mr Joe: Cost of my hospital bills and dragging the scrapt car to garage.
Interviewer:What was the value of your car?
Mr Joe: It was around 76,000 DIR
Interviewer: Have you registered with any insurance firm?
Mr. Joe: Yes, I had registered with one, but I cannot be compensated since I had defaulted paying premiums for the past three months.
Interviewer: That’s a great loss, my friend
Mr Joe: It is a great one. Considering also that I had taken a loan to buy that car, and I had not completed repaying back the loan.
Assessment
Prior to this accident, Joe’s financial position could not be said to be so healthy, but it was much better as his car was worth more than 67,000 DIR. Although he was servicing a loan, the presence of the car was a good guarantee of his financial position. After the accident, Joe remained with a loan to service. This jeorpadized his financial position.
How it could be avoided
The accident could have been avoided if Joe had not driven his car personality. Alternatively, he would have sought medicating first, then take a bed rest, after which he would be free to drive. The accident also would not have happened as a result of over speeding. If he was spinning at a low speed, he would not have gotten roll backs that he sustained. Another factor is if he had not obtained the loan to buy the car, he would not be faced with such problems.
Offer advice
In future, you should not drive if your health conditions are not good. Check on your driving speed, especially of terrains you are either conversant or not conversant with. Considering his financial situation also, I would recommend that he does not take a loan to buy luxuries yet he is not capable of maintaining his faults when they occur (Katz, 2007).
Possible solution for Joe’s current situation
Joe’s current situation could have been avoided from the beginning; first he would seek medication before driving home alone while unwell. Alternatively, he would request one of his colleagues to help him drive home. He would also avoid taking loans to buy a car. Instead, he would concentrate on doing profitable business. To rectify the whole issue, Joe should consult from those experienced and learn how to prioritize issues.
Cost of credit and debt management
Considering the financial position of Joe, I would encourage him to register with the Dept management plans. According to Berk (2012), this is a financial act like a financial counselor to a client by offering financial management advises. A client deposits money each month with the credit counseling organization that subsequently uses the deposits to settle on unsecured debts. In Joe’s situation, he can be paying his loan in a series of yearly, semi-yearly or monthly basis, considering on the type of loan if it was long term or short term loan.
Money borrowed on long term capital is normally repaid back in a series of yearly, semi-yearly or monthly. Interest rate risk exists in loans accrued. They should not be ignored. Credit risks are risks of loss arising from debtors who fail to repay their loan. According to Saunders (2010), if one fails to repay the loan, his credit sensitive transactions may default to risks. Its worth noting that small down payments will result to higher lender risk and consequently to higher interest rates Lowering interest rates help reduce the interest payments in at a given time and can also assist one to pay back what you owe more conveniently. To lower the interest rates, one should ensure that there is good security; he has a large up front cash deposit and within a short period.
Managing Dept
According to Ahmadivand (2012), for one to manage his or her dept, the needs to ensure that he is financially in a position to take a loan, he also needs to consider the credit his insurance which includes; credit life, credit accident and credit property. One also needs to secure something he can sell if he fails to repay the loan. It is also advisable for one to borrow only when it’s necessary and kipping in mind that it has to be refunded, hence there needs to be a backup plan for payment
References
Ahmadivand, A. (2012). Enhanced and Optimal Current Limiter Based on Passive Magnetic Materials. Advances in Digital Multimedia, 1(1), 19-28.
Berk, J., DeMarzo, P., & Harford, J. (2012). Fundamentals of Corporate Finance, 1/e.
Katz, J. A., & Green, R. P. (2007). Entrepreneurial small business (Vol. 200). McGraw- Hill/Irwin.
Saunders, A., & Allen, L. (2010). Credit risk management in and out of the financial crisis: New approaches to value at risk and other paradigms (Vol. 528). John Wiley & Sons.