ChApter 5 | YOUR RESUME AND FINANCIAL STATEMENT | 93
Credit Cards and Revolving Credit Account:
List bank cards and revolving accounts at
stores and with gasoline companies, and
fill in the outstanding balance.
Unsecured Loans: List any unsecured
notes to banks, individuals, credit unions,
savings and loans, or any other person or
institution. These are commonly called
signature loans because all the lender gets
is your signature on your promise to repay
the loan—you don’t pledge any collateral.
Examples include student loans and loans
from relatives. State the lender and terms of
payment, including any balloon payments
and when the loan will be paid in full, as
well as the outstanding balance.
Loans Secured by Real Estate: List each
note and deed of trust you owe. State the
property by which it is secured and the
terms of payment, including any balloon
payment and when the note will be paid in
full, as well as the unpaid balance.
Loans Secured by Personal Property: List
any loans secured by equipment, vehicles,
business inventory, or anything other
than real estate. Show the payee, unpaid
balance, security, terms of payment,
including any balloon payment, and when
the note will be paid in full.
Loans Against Life insurance Policies: If you
borrowed against a whole life insurance
policy, list the insurance company, terms,
and outstanding balance.
Other Liabilities: List whatever else you
currently owe. This may include unpaid
medical bills, tax liabilities, unpaid lawyer
bills, unpaid alimony or child support, and
debts to bookies.Total Liabilities: Add up all the amounts
you owe others. The result is your total
liabilities.CAUTiON
Check for consistency. Before you go
on, carefully compare the information on your
assets and liabilities lists. Make sure they are
consistent. For instance, make sure that you
show assets for which you show liabilities and
vice versa.Determine Your Net Worth
To calculate your net worth, simply
subtract your total liabilities from your
total assets. (If you are using the Personal
Financial Statement form included on the
CD-ROM, the spreadsheet program will
automatically calculate this amount.)
In the last blank, add together your total
liabilities and net worth. This figure should
match your total assets. If it doesn’t, you’ve
made a mathematical error.CAUTiON
if your total liabilities are more
than your total assets, your net worth will
be a negative figure and you’ll need to place
brackets around the number. Of course, people
with a negative net worth frequently have
difficulty borrowing money and may have to
consider another form of financing, such as
selling equity in the business. (See Chapter 4
for information about raising money.)