What is Tim and Autumn Davis's total financial liability based on their current debts?

To determine Tim and Autumn Davis's total financial liability based on their current debts, it is essential to accurately assess and sum all outstanding obligations they have. Financial liabilities encompass any amount owed, such as loans, credit card balances, mortgages, or other forms of debt.

In this scenario, if the correct answer is $18,000, it likely indicates that the total of all their debts adds up to this amount. For instance, they may have multiple debts such as a car loan of $10,000, credit card debt of $5,000, and perhaps a personal loan of $3,000. When these amounts are combined, they total $18,000.

Establishing the total financial liability is crucial for personal financial planning, as it allows individuals to understand their financial position and make informed decisions regarding budgeting, saving, and debt management. Having a clear picture of liabilities helps in planning for future expenses and investments, which are vital for achieving long-term financial goals.