Money Management CCCS your partner in education,counseling and debt repayment Howard County Surviving The Recession Consum...
Overview <ul><li>My Background </li></ul><ul><li>What will we cover </li></ul><ul><li>How long is the presentation </li></...
CCCS OF MD & DE MISSION <ul><li>To provide educational programs and implement financial solutions through counseling that ...
CCCS of MD & DE Qualifications <ul><li>Founded in 1966 </li></ul><ul><li>Licensed  (first agency in MD #14-01, first agenc...
CCCS of MD & DE Services <ul><li>CCCS of MD & DE Services </li></ul><ul><li>Budgeting </li></ul><ul><li>Debt Management Pl...
What are your goals <ul><li>Learn to become a better steward of your assets? </li></ul><ul><li>Learn how to budget?  </li>...
Did you know?????? <ul><li>If you have a credit card balance of $5000 and paid 2% minimum payment it would take 21.5 years...
TEN RULE FOR FINANCES <ul><li>Pay Yourself First </li></ul><ul><li>Use direct deposit if possible </li></ul><ul><li>Budget...
FINANCIAL FITNESS  CHECKLIST <ul><li>ARE YOU USING MORE OF YOUR INCOME TO PAY DEBT </li></ul><ul><li>DO YOU MAKE ONLY MINI...
Preparing a spending plan <ul><ul><ul><ul><ul><li>PAST </li></ul></ul></ul></ul></ul><ul><li>Review your spending habits <...
How can I track my spending <ul><ul><ul><ul><ul><li>PRESENT </li></ul></ul></ul></ul></ul><ul><li>Write down all purchase ...
A good spending plan can <ul><li>FUTURE </li></ul><ul><li>Reveal your financial condition </li></ul><ul><li>Income vs. exp...
Why Is a Spending Plan Important?  <ul><li>Establishes financial controls </li></ul><ul><li>Helps avoid overspending </li>...
What do I learn from tracking my expenses <ul><li>Where money goes </li></ul><ul><li>How much I eat out </li></ul><ul><li>...
How can I track my spending <ul><li>Expense charts </li></ul><ul><li>Write down all purchase </li></ul><ul><li>Track cash ...
Expense tracking <ul><li>Track your Cash-  Use a small book . Keep it in your pocket and write down all cash, ATM charges ...
Counting your income <ul><li>List your income </li></ul><ul><li>Get a total disposable income </li></ul><ul><ul><li>Total ...
Income  <ul><li>Job income </li></ul><ul><li>Retirement income </li></ul><ul><li>Child support </li></ul><ul><li>Dividends...
Budget analysis <ul><li>List monthly fixed expenses </li></ul><ul><li>List monthly variable expenses </li></ul><ul><li>Rev...
Budgeting SMART <ul><ul><ul><li>A budget must be  </li></ul></ul></ul><ul><li>S = Specific </li></ul><ul><li>M = Manageabl...
Budget Analysis <ul><li>Fixed Expenses </li></ul><ul><li>Savings </li></ul><ul><li>Housing </li></ul><ul><li>Utilities </l...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable </li...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities  $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable...
Save big when shopping <ul><li>Get a Sunday paper </li></ul><ul><li>Review the on sale items </li></ul><ul><li>Pre plan me...
Expense Allocation Chart CCCS your partner in education,counseling and debt repayment Housing 23-33% Food 12-29% Transport...
Trick yourself to wealth <ul><li>I.R.S. refunds $2300 </li></ul><ul><li>Save a Dollar a day $ 365 </li></ul><ul><li>Coupon...
Compound Interest <ul><li>“  The most powerful force in the world is compound interest” </li></ul><ul><li>Albert Einstein ...
Rule of 72 <ul><li>Rule of 72   </li></ul><ul><ul><li>A formula that shows you how long it takes to double your money </li...
Rule of 72 <ul><li>Year  Rate of return 6% </li></ul><ul><li>1  $10,000 </li></ul><ul><li>13   $20,000 </li></ul><ul><li>2...
Compound Interest <ul><li>Assumptions </li></ul><ul><ul><li>$2000 per year X ten years = $20,000 </li></ul></ul><ul><ul><l...
Saving Money Fact <ul><li>If you saved $5.00 per week (with no interest) you would save $5200 IN 20 Years </li></ul><ul><l...
10 Rules of Investing <ul><li>1)Set clear goals </li></ul><ul><li>2)Know your finances well </li></ul><ul><li>3)Question A...
Credit and Debt Management CCCS your partner in education,counseling and debt repayment “ Today, there are three kinds of ...
Personal financial statement <ul><li>Assets </li></ul><ul><ul><li>Checking/savings account </li></ul></ul><ul><ul><li>Acco...
Debt to income Ratio <ul><li>Monthly income </li></ul><ul><li>Take home pay, alimony, commissions, </li></ul><ul><li>divid...
How is my debt to income ratio <ul><li>0 to 10% </li></ul><ul><ul><li>Excellent keep up the good work </li></ul></ul><ul><...
CREDIT REPORT CONTAINS <ul><li>YOUR FINANCIAL RESUME </li></ul><ul><li>Personal </li></ul><ul><li>Credit Accounts </li></u...
OBTAIN YOUR REPORT <ul><li>Yearly from Equifax, Experian, and Trans Union  </li></ul><ul><li>If denied credit </li></ul><u...
What Is a Credit Report <ul><li>Record of how you have paid your credit cards and other loans </li></ul><ul><li>Credit rep...
How Long Do Items Stay On My Credit Report <ul><li>Most Items – 7 years from date of last activity </li></ul><ul><li>Bankr...
Credit Report Contact info <ul><li>Get report Report fraud </li></ul><ul><li>Equifax  800-685-1111  800-525-6285 </li></ul...
What Is a Credit Score <ul><li>Used to predict the future of how likely an individual is to repay a new loan based on expe...
How An Improved Score Can Save You Money <ul><li>Car Loan: 48 Mos. </li></ul><ul><li>Loan Principal: $10,000 </li></ul><ul...
CREDIT SCORE <ul><li>*  FAIR ISAACS CREATOR </li></ul><ul><li>*  350-850 </li></ul><ul><li>* 10 SCORE CARDS </li></ul><ul>...
How Scores Are Calculated <ul><li>Credit Score breakdown </li></ul><ul><li>35% Payment History </li></ul><ul><li>30% amoun...
Bankruptcy <ul><li>Purpose: to provide new start to those overwhelmed by debt with no means to repay </li></ul><ul><li>Int...
Types of Bankruptcy <ul><li>Chapter 7 – provides for discharge for all unsecured debt. Can only receive discharge once eve...
Bankruptcy Continued <ul><li>Law change 10 2005 </li></ul><ul><li>Means test </li></ul><ul><li>Budget and Credit Counselin...
Housing Issues <ul><li>Regular Sale – FSBO or Realtor </li></ul><ul><li>Modification </li></ul><ul><li>Refinance </li></ul...
Mortgage Crisis <ul><li>Where to turn for help </li></ul><ul><ul><li>WWW.CCCS-inc.org </li></ul></ul><ul><ul><li>WWW>Makin...
Mortgage Crisis <ul><li>Call Creditor </li></ul><ul><li>Report suspicious companies </li></ul><ul><li>Avoid Scams </li></u...
Monthly Mortgage Payments <ul><li>$ borrowed rate P&I Payment </li></ul><ul><ul><li>180,000 6.5 $1138 </li></ul></ul><ul><...
Projected Tax Savings <ul><li>$200,000 MTG @ 6.5%, 30 yr fixed </li></ul><ul><ul><ul><li>RENT  BUY </li></ul></ul></ul><ul...
Avoid Predatory Lending <ul><li>Payday Loans – short term loans secured by post dated checks. High interest </li></ul><ul>...
SCAMS <ul><li>S = Secure, don’t give out your personal  information to others </li></ul><ul><li>C  = Check your credit rep...
FRAUD AND ID THEFT <ul><li>SCAMS </li></ul><ul><li>SEND $6000 FOR 5 MILLION </li></ul><ul><li>SCHREDDING YOUR DOCUMENTS </...
CREDIT REPAIR CLINICS <ul><li>KEEP AWAY FROM THEM </li></ul><ul><li>HEAVY FEES FOR NOTHING </li></ul><ul><li>PROMISES THEY...
Expense reduction ideas <ul><li>Increase Insurance deductible </li></ul><ul><li>Insure only house not land </li></ul><ul><...
Expense reduction ideas    Continued <ul><li>Reduce Fees </li></ul><ul><li>Money pits </li></ul><ul><ul><li>Big house </li...
Avoid Fees <ul><li>Over limit $39 </li></ul><ul><li>Atm Fees $2.50 </li></ul><ul><li>Foreign C.C. fees </li></ul><ul><li>L...
Saving Web sites <ul><li>Shopzilla.com </li></ul><ul><li>Pricegrabber.com </li></ul><ul><li>Sortprice.com </li></ul><ul><l...
Websites Continued <ul><li>www.ftc.gov </li></ul><ul><li>www.quickenonline.com </li></ul><ul><li>www.livingto100.com </li>...
Contact Information Consumer Credit Counseling Service of MD and DE, Inc. <ul><li>Jim Harris 410-7472050 </li></ul><ul><li...
Upcoming SlideShare
Loading in …5
×

The Balancing Act: Tips & Tricks to Save You Money

1,340 views

Published on

Published in: Economy & Finance
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,340
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
51
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

The Balancing Act: Tips & Tricks to Save You Money

  1. 1. Money Management CCCS your partner in education,counseling and debt repayment Howard County Surviving The Recession Consumer Credit Counseling Service of Maryland and Delaware, Inc.
  2. 2. Overview <ul><li>My Background </li></ul><ul><li>What will we cover </li></ul><ul><li>How long is the presentation </li></ul><ul><li>What are our goals for today </li></ul><ul><li>Understanding Credit </li></ul><ul><li>Handouts </li></ul><ul><li>Questions and contact information </li></ul>CCCS your partner in education,counseling and debt repayment
  3. 3. CCCS OF MD & DE MISSION <ul><li>To provide educational programs and implement financial solutions through counseling that promote self-sufficiency to individuals, families, neighborhoods and communities. </li></ul>CCCS your partner in education,counseling and debt repayment
  4. 4. CCCS of MD & DE Qualifications <ul><li>Founded in 1966 </li></ul><ul><li>Licensed (first agency in MD #14-01, first agency in DE #07-01 </li></ul><ul><li>District of Columbia does not require a license, licensed in VA. Counseling Services offered in 34 states) </li></ul><ul><li>501 (c) (3) Non Profit Corporation </li></ul><ul><li>COA accredited </li></ul><ul><li>NFCC member </li></ul><ul><li>All counselors certified thru the NFCC </li></ul><ul><li>HUD approved </li></ul><ul><li>BBB accredit </li></ul><ul><li>EOUST Approved </li></ul>CCCS your partner in education,counseling and debt repayment
  5. 5. CCCS of MD & DE Services <ul><li>CCCS of MD & DE Services </li></ul><ul><li>Budgeting </li></ul><ul><li>Debt Management Plans </li></ul><ul><li>Housing Counseling </li></ul><ul><li>Pre-file Bankruptcy Counseling </li></ul><ul><li>Pre-discharge Bankruptcy Education </li></ul><ul><li>Financial Literacy Education </li></ul>CCCS your partner in education,counseling and debt repayment
  6. 6. What are your goals <ul><li>Learn to become a better steward of your assets? </li></ul><ul><li>Learn how to budget? </li></ul><ul><li>Buy a home? </li></ul><ul><li>Save for retirement? </li></ul><ul><li>Become a millionaire? </li></ul><ul><li>Financial security for you and family? </li></ul><ul><li>Do you have financial goals? </li></ul>CCCS your partner in education,counseling and debt repayment
  7. 7. Did you know?????? <ul><li>If you have a credit card balance of $5000 and paid 2% minimum payment it would take 21.5 years to pay off </li></ul><ul><li>If you saved $4000 per year @ 10% average return for 30 years you would have $763424 </li></ul><ul><li>The average return on the stock market history is approx 8.5% </li></ul>CCCS your partner in education,counseling and debt repayment
  8. 8. TEN RULE FOR FINANCES <ul><li>Pay Yourself First </li></ul><ul><li>Use direct deposit if possible </li></ul><ul><li>Budget wisely </li></ul><ul><li>Track your cash </li></ul><ul><li>Stop impulse buying </li></ul><ul><li>Do not overspend, make a list and stick to </li></ul><ul><li>Do not covet your neighbor’s lifestyle, live within your means </li></ul><ul><li>Diversify – business, stocks, real estate </li></ul><ul><li>Interview several financial advisors </li></ul><ul><li>Review your credit reports on a regular basis </li></ul>CCCS your partner in education,counseling and debt repayment
  9. 9. FINANCIAL FITNESS CHECKLIST <ul><li>ARE YOU USING MORE OF YOUR INCOME TO PAY DEBT </li></ul><ul><li>DO YOU MAKE ONLY MINIMUM PAYMENTS ON CREDIT CARDS </li></ul><ul><li>ARE YOU NEAR YOUR CREDIT LIMITS </li></ul><ul><li>ARE YOU PAYING BILLS WITH MONIES MEANT FOR OTHER THINGS </li></ul><ul><li>DO YOU OFTEN PAY BILLS LATE </li></ul><ul><li>ARE YOU DIPPING INTO YOUR SAVINGS TO PAY BILLS </li></ul><ul><li>DO YOU HAVE A SAVINGS PLAN </li></ul><ul><li>DO YOU PUT OFF VISITS TO THE DOCTOR DUE TO NO MONEY </li></ul><ul><li>HAVE COLLECTION AGENCIES CALLED YOU LATLEY </li></ul><ul><li>ARE YOU WORKING MORE THAN ONE JOB TO MAKE ENDS MEET </li></ul><ul><li>ARE YOU BORROWING MONEY OR USING CREDIT CARDS TO PAY FOR THINGS YOU USED TO BUY WITH CASH </li></ul><ul><li>IF YOU OR YOUR SPOUSE LOST YOUR JOB, WOULD YOU BE IN FINANCIAL TROUBLE RIGHT AWAY </li></ul><ul><li>DO YOU WORRY ABOUT MONEY A LOT </li></ul><ul><li>HAVE YOU FORGOTTEN TO DO A BUDGET OR A SPENDING PLAN </li></ul><ul><li>See CCCS CD ROM </li></ul>CCCS your partner in education,counseling and debt repayment
  10. 10. Preparing a spending plan <ul><ul><ul><ul><ul><li>PAST </li></ul></ul></ul></ul></ul><ul><li>Review your spending habits </li></ul><ul><li>Understand how to spend and save </li></ul><ul><li>Look at the last 3 months of </li></ul><ul><ul><li>Cash spent </li></ul></ul><ul><ul><li>Checking account </li></ul></ul><ul><ul><li>Credit card usage </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  11. 11. How can I track my spending <ul><ul><ul><ul><ul><li>PRESENT </li></ul></ul></ul></ul></ul><ul><li>Write down all purchase </li></ul><ul><li>Track your cash in a small book </li></ul><ul><li>Track your checks written </li></ul><ul><li>Track credit card usage </li></ul><ul><li>Track fees in small book (ATM) </li></ul><ul><li>Transfer to a computer for comparison </li></ul><ul><li>Compare month to month </li></ul>CCCS your partner in education,counseling and debt repayment
  12. 12. A good spending plan can <ul><li>FUTURE </li></ul><ul><li>Reveal your financial condition </li></ul><ul><li>Income vs. expense </li></ul><ul><li>Establish financial direction </li></ul><ul><li>Breaks down financial control and direction </li></ul><ul><li>Stop overspending </li></ul><ul><li>Stop impulse buying </li></ul>CCCS your partner in education,counseling and debt repayment
  13. 13. Why Is a Spending Plan Important? <ul><li>Establishes financial controls </li></ul><ul><li>Helps avoid overspending </li></ul><ul><li>Budgets for emergencies </li></ul><ul><li>Helps achieve Goals </li></ul><ul><li>Controls impulse buying </li></ul><ul><li>Helps in family discussions </li></ul><ul><li>Helps your children understand finances </li></ul>CCCS your partner in education,counseling and debt repayment
  14. 14. What do I learn from tracking my expenses <ul><li>Where money goes </li></ul><ul><li>How much I eat out </li></ul><ul><li>Entertainment </li></ul><ul><li>Clothing </li></ul><ul><li>Funding priorities </li></ul><ul><li>Savings </li></ul><ul><li>How much debt I reduced </li></ul>CCCS your partner in education,counseling and debt repayment
  15. 15. How can I track my spending <ul><li>Expense charts </li></ul><ul><li>Write down all purchase </li></ul><ul><li>Track cash in a small book </li></ul><ul><li>Review checking account </li></ul><ul><li>Review credit card purchases </li></ul><ul><li>Track on a spread sheet all expenditures </li></ul><ul><li>Compare month to month </li></ul><ul><li>Place short and long term goals in highly visible area for the family to see progress </li></ul>CCCS your partner in education,counseling and debt repayment
  16. 16. Expense tracking <ul><li>Track your Cash- Use a small book . Keep it in your pocket and write down all cash, ATM charges on a daily basis. </li></ul><ul><li>Review your credit cards- Need, want or desire?? Review your spending habits. Are you living on them??? </li></ul><ul><li>Review your checking account </li></ul><ul><li>Count all three – Add all 3 together, this is your spending level vs. your income </li></ul><ul><li>Track monthly – track on computer, buy software, take charge </li></ul>CCCS your partner in education,counseling and debt repayment
  17. 17. Counting your income <ul><li>List your income </li></ul><ul><li>Get a total disposable income </li></ul><ul><ul><li>Total net income x 52 weeks spouse1 </li></ul></ul><ul><ul><li>Total net income x 52 weeks spouse 2 </li></ul></ul><ul><ul><li>Divide by 12 = monthly income </li></ul></ul><ul><ul><li>Gives total income </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  18. 18. Income <ul><li>Job income </li></ul><ul><li>Retirement income </li></ul><ul><li>Child support </li></ul><ul><li>Dividends/interest </li></ul><ul><li>3 year average bonuses, tips, commission </li></ul><ul><li>Tax refunds </li></ul><ul><li>Government program </li></ul><ul><li>No overtime </li></ul>CCCS your partner in education,counseling and debt repayment
  19. 19. Budget analysis <ul><li>List monthly fixed expenses </li></ul><ul><li>List monthly variable expenses </li></ul><ul><li>Review for area to reduce expenses </li></ul><ul><li>Review area that needs to be increased </li></ul><ul><li>Define needs, wants and desires </li></ul>CCCS your partner in education,counseling and debt repayment
  20. 20. Budgeting SMART <ul><ul><ul><li>A budget must be </li></ul></ul></ul><ul><li>S = Specific </li></ul><ul><li>M = Manageable/Moveable </li></ul><ul><li>A = Attainable </li></ul><ul><li>R = Reasonable </li></ul><ul><li>T = Timely </li></ul>CCCS your partner in education,counseling and debt repayment
  21. 21. Budget Analysis <ul><li>Fixed Expenses </li></ul><ul><li>Savings </li></ul><ul><li>Housing </li></ul><ul><li>Utilities </li></ul><ul><li>Cable </li></ul><ul><li>Internet </li></ul><ul><li>phone </li></ul><ul><li>Cell </li></ul><ul><li>Insurance </li></ul><ul><li>Food </li></ul><ul><li>Car payment </li></ul><ul><li>Gas </li></ul><ul><li>Repairs </li></ul><ul><li>Parking </li></ul><ul><li>Transportation </li></ul><ul><li>Laundry </li></ul><ul><li>Medical </li></ul><ul><li>Medicine </li></ul><ul><li>Dental </li></ul><ul><li>Loans </li></ul><ul><li>Credit cards </li></ul><ul><li>Lunches </li></ul><ul><li>Tuition </li></ul><ul><li>Childcare </li></ul><ul><li>Total </li></ul><ul><li>Variable Expenses </li></ul><ul><li>Entertainment </li></ul><ul><li>Restaurants </li></ul><ul><li>Clothing </li></ul><ul><li>Health clubs </li></ul><ul><li>Pet care </li></ul><ul><li>Charity/donations </li></ul><ul><li>Emergency funds </li></ul><ul><li>Vacations </li></ul><ul><li>Bank charges </li></ul><ul><li>Postage </li></ul><ul><li>Other </li></ul><ul><li>Cleaning services </li></ul><ul><li>Babysitting </li></ul><ul><li>Gifts </li></ul><ul><li>_____________ </li></ul><ul><li>_____________ </li></ul><ul><li>_____________ </li></ul><ul><li>Total </li></ul>CCCS your partner in education,counseling and debt repayment
  22. 22. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  23. 23. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  24. 24. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  25. 25. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  26. 26. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  27. 27. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance $20 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  28. 28. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance $20 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food $150 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  29. 29. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance $20 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food $150 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches $50 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  30. 30. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance $20 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food $150 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches $50 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment $25 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  31. 31. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance $20 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food $150 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches $50 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment $25 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants $100 </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  32. 32. Reducing Daily Expenses <ul><ul><ul><ul><ul><li>Utilities $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cable $80 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Internet $40 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Phone $60 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Insurance $20 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Food $150 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Lunches $50 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Entertainment $25 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Restaurants $100 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>TOTAL $565 </li></ul></ul></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  33. 33. Save big when shopping <ul><li>Get a Sunday paper </li></ul><ul><li>Review the on sale items </li></ul><ul><li>Pre plan menu </li></ul><ul><li>Shop Alone </li></ul><ul><li>Don’t buy bulk, unless justified </li></ul><ul><li>Make a list </li></ul><ul><li>No impulse buying </li></ul><ul><li>Use coupons </li></ul><ul><li>Don’t go hungry </li></ul><ul><li>Take an inventory of pantry and freezer </li></ul>CCCS your partner in education,counseling and debt repayment
  34. 34. Expense Allocation Chart CCCS your partner in education,counseling and debt repayment Housing 23-33% Food 12-29% Transportation 7-10% Entertainment 4-6% Savings 5-10% Insurance, Medical 7-10 % Church/Charity 5-10% Personal Debt 8-18% Clothing 4-7%
  35. 35. Trick yourself to wealth <ul><li>I.R.S. refunds $2300 </li></ul><ul><li>Save a Dollar a day $ 365 </li></ul><ul><li>Coupon clipping $ 730 </li></ul><ul><li>Cut $10 a week $ 520 </li></ul><ul><li>Insurance deduct $50 $ 600 </li></ul><ul><li>TOTAL $4515 </li></ul><ul><li>6% x 20 years this equates to approx $300,000 </li></ul>CCCS your partner in education,counseling and debt repayment
  36. 36. Compound Interest <ul><li>“ The most powerful force in the world is compound interest” </li></ul><ul><li>Albert Einstein </li></ul><ul><li>Insanity – doing the same thing over and over again and expecting different results </li></ul>CCCS your partner in education,counseling and debt repayment
  37. 37. Rule of 72 <ul><li>Rule of 72 </li></ul><ul><ul><li>A formula that shows you how long it takes to double your money </li></ul></ul><ul><ul><li>Example </li></ul></ul><ul><ul><ul><li>72 divided by 4% interest rate = 18 years </li></ul></ul></ul><ul><ul><ul><li>72 divided by 6% interest rate = 12 years </li></ul></ul></ul><ul><ul><ul><li>72 divided by 12% interest rate = 6 years </li></ul></ul></ul>CCCS your partner in education,counseling and debt repayment
  38. 38. Rule of 72 <ul><li>Year Rate of return 6% </li></ul><ul><li>1 $10,000 </li></ul><ul><li>13 $20,000 </li></ul><ul><li>25 $40,000 </li></ul><ul><li>Year Rate of return 12% </li></ul><ul><li>1 $10,000 </li></ul><ul><li> 7 $20,000 </li></ul><ul><li>13 $40,000 </li></ul><ul><li>19 $80,000 </li></ul><ul><li>25 $160,000 </li></ul>CCCS your partner in education,counseling and debt repayment
  39. 39. Compound Interest <ul><li>Assumptions </li></ul><ul><ul><li>$2000 per year X ten years = $20,000 </li></ul></ul><ul><ul><li>Invested for 20 years </li></ul></ul><ul><ul><li>20 years the $20,000 is worth $178,504 </li></ul></ul><ul><ul><li>$4000 per year X ten years = $40,000 </li></ul></ul><ul><ul><li>Invested for 10 years </li></ul></ul><ul><ul><li>10 years the $40,000 is worth $79,098 </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  40. 40. Saving Money Fact <ul><li>If you saved $5.00 per week (with no interest) you would save $5200 IN 20 Years </li></ul><ul><li>Rate Investment 20Yrs 30 Yrs </li></ul><ul><ul><li>6% $5200 $9624 $20,924 </li></ul></ul><ul><ul><li>8% $5200 $12268 $31039 </li></ul></ul><ul><ul><li>10% $5200 $15,817 $47082 </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  41. 41. 10 Rules of Investing <ul><li>1)Set clear goals </li></ul><ul><li>2)Know your finances well </li></ul><ul><li>3)Question Authority </li></ul><ul><li>4)Don’t be a follower </li></ul><ul><li>5)Be humble </li></ul><ul><li>6)Be patient </li></ul><ul><li>7)Use moderation in investing </li></ul><ul><li>8)Knowledge is power, know your investments </li></ul><ul><li>9)Don’t be a high risk taker, know your risk tolerance </li></ul><ul><li>10)Don’t worship mere men </li></ul>CCCS your partner in education,counseling and debt repayment
  42. 42. Credit and Debt Management CCCS your partner in education,counseling and debt repayment “ Today, there are three kinds of people:  the have's, the have-not's, and the have-not-paid-for-what-they-have's.”  Earl Wilson
  43. 43. Personal financial statement <ul><li>Assets </li></ul><ul><ul><li>Checking/savings account </li></ul></ul><ul><ul><li>Accounts receivable </li></ul></ul><ul><ul><li>Marketable securities </li></ul></ul><ul><ul><li>Pension/401k </li></ul></ul><ul><ul><li>Real estate </li></ul></ul><ul><ul><li>Vehicles/boats </li></ul></ul><ul><ul><li>Furniture </li></ul></ul><ul><ul><li>Total assets </li></ul></ul><ul><li>Liabilities </li></ul><ul><ul><li>Accounts payable </li></ul></ul><ul><ul><li>Loans </li></ul></ul><ul><ul><li>Taxes </li></ul></ul><ul><ul><li>Credit cards </li></ul></ul><ul><ul><li>Real estate </li></ul></ul><ul><ul><li>Misc debt </li></ul></ul><ul><ul><li>Total liabilities </li></ul></ul><ul><ul><li>Net worth </li></ul></ul><ul><ul><li>Total assets/liabilities </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  44. 44. Debt to income Ratio <ul><li>Monthly income </li></ul><ul><li>Take home pay, alimony, commissions, </li></ul><ul><li>dividends, interest, other income </li></ul><ul><li>Minimum debt payments </li></ul><ul><li>Auto payment, loan payments, credit cards, past medical care. (Regular monthly payments) </li></ul><ul><li>Payments divided by monthly income equals your debt to income ratio </li></ul><ul><li>SEE THE HANDOUT. HOW DO YOU STAND </li></ul>CCCS your partner in education,counseling and debt repayment
  45. 45. How is my debt to income ratio <ul><li>0 to 10% </li></ul><ul><ul><li>Excellent keep up the good work </li></ul></ul><ul><ul><li>10.1 to 19.9% </li></ul></ul><ul><ul><li>Not bad, but as you approach 20% you are starting to place strain on your budget </li></ul></ul><ul><ul><li>20 to 24.9% </li></ul></ul><ul><ul><li>Your debt may already be a problem. Start a spending plan now even if this is temporary. </li></ul></ul><ul><ul><li>25 to 37% </li></ul></ul><ul><ul><li>Immediately review your spending habits and develop a budget. Look for ways to cut spending now. Look at all options to reduce your debt </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>37.1% or Greater </li></ul></ul><ul><ul><li>Get counseling. Your ratio is way too high. Budgeting and tracking your spending are not options at this point. Debt Management programs may be a good alternative. ACT NOW! </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  46. 46. CREDIT REPORT CONTAINS <ul><li>YOUR FINANCIAL RESUME </li></ul><ul><li>Personal </li></ul><ul><li>Credit Accounts </li></ul><ul><li>Public Record </li></ul><ul><li>Inquiries </li></ul><ul><li>SEE EQUIFAX REPORT (HANDOUT) </li></ul><ul><li>FRAUD FREEZING YOUR REPORT </li></ul><ul><ul><li>Pin code </li></ul></ul><ul><ul><li>DISPUTING ITEMS LETTER (HANDOUT) </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  47. 47. OBTAIN YOUR REPORT <ul><li>Yearly from Equifax, Experian, and Trans Union </li></ul><ul><li>If denied credit </li></ul><ul><li>Potential Fraud </li></ul><ul><li>Free copy yearly starting in 2005 thanks to the Fair and Accurate Credit Transactions Act (FACTAct) </li></ul><ul><li>www.annualcreditreport.com </li></ul>CCCS your partner in education,counseling and debt repayment
  48. 48. What Is a Credit Report <ul><li>Record of how you have paid your credit cards and other loans </li></ul><ul><li>Credit report includes: </li></ul><ul><li>Identifying information </li></ul><ul><li>Credit information </li></ul><ul><li>Public record information </li></ul><ul><li>Inquiries </li></ul>CCCS your partner in education,counseling and debt repayment
  49. 49. How Long Do Items Stay On My Credit Report <ul><li>Most Items – 7 years from date of last activity </li></ul><ul><li>Bankruptcy – 10 years </li></ul>CCCS your partner in education,counseling and debt repayment
  50. 50. Credit Report Contact info <ul><li>Get report Report fraud </li></ul><ul><li>Equifax 800-685-1111 800-525-6285 </li></ul><ul><li>Experian 888-experian 888-experian </li></ul><ul><li>Transunion 800-888-4213 800-680-7289 </li></ul>CCCS your partner in education,counseling and debt repayment
  51. 51. What Is a Credit Score <ul><li>Used to predict the future of how likely an individual is to repay a new loan based on experience with millions of consumers and previous credit history </li></ul><ul><li>Computer models calculate scores based on information contained in a credit report </li></ul><ul><li>Scores range from 350-850 </li></ul><ul><li>Each creditor decides what credit score range it considers to be a good risk or poor risk </li></ul>CCCS your partner in education,counseling and debt repayment
  52. 52. How An Improved Score Can Save You Money <ul><li>Car Loan: 48 Mos. </li></ul><ul><li>Loan Principal: $10,000 </li></ul><ul><li>Current Score: 500-599 </li></ul><ul><li>Improved Score: 690-719 </li></ul><ul><li> Current Score Improved Score </li></ul><ul><li>Av. Nat’l APR 18.4% 7.9% </li></ul><ul><li>Monthly Pmt $295.84 $243.66 </li></ul><ul><li>Total Interest $4,200.64 $1,695.63 </li></ul><ul><li>Savings on monthly pmt $52.18 </li></ul><ul><li>Savings over life of loan $2,505.01 </li></ul>CCCS your partner in education,counseling and debt repayment
  53. 53. CREDIT SCORE <ul><li>* FAIR ISAACS CREATOR </li></ul><ul><li>* 350-850 </li></ul><ul><li>* 10 SCORE CARDS </li></ul><ul><li>* PREDICTS FUTURE NOT PAST </li></ul><ul><li>* SUMMARY OF YOUR REPORT </li></ul><ul><li>* USED BY LENDERS </li></ul><ul><li>DETERMINES YOUR LEVEL OF CREDITWOTHINESS </li></ul><ul><li>QUALIFIES YOU FOR HIGHER/LOWER RATES </li></ul><ul><li>DETERMINES INSURANCE RATES </li></ul><ul><li>COULD IMPACT PROMOTIONS </li></ul>CCCS your partner in education,counseling and debt repayment
  54. 54. How Scores Are Calculated <ul><li>Credit Score breakdown </li></ul><ul><li>35% Payment History </li></ul><ul><li>30% amount Owed </li></ul><ul><li>15% Length of Credit History </li></ul><ul><li>10% New credit </li></ul><ul><li>10% Type of credit </li></ul>CCCS your partner in education,counseling and debt repayment
  55. 55. Bankruptcy <ul><li>Purpose: to provide new start to those overwhelmed by debt with no means to repay </li></ul><ul><li>Intended to be a last resort </li></ul><ul><li>Bankruptcy filings often precipitated by job loss, divorce, illness, death in family </li></ul>CCCS your partner in education,counseling and debt repayment
  56. 56. Types of Bankruptcy <ul><li>Chapter 7 – provides for discharge for all unsecured debt. Can only receive discharge once every 8 years </li></ul><ul><li>Chapter 13 – a 3-5 year repayment plan </li></ul><ul><li>Chapter 11 – for businesses </li></ul>CCCS your partner in education,counseling and debt repayment
  57. 57. Bankruptcy Continued <ul><li>Law change 10 2005 </li></ul><ul><li>Means test </li></ul><ul><li>Budget and Credit Counseling Certificate </li></ul><ul><li>Pre Bankruptcy discharge Certificate </li></ul><ul><li>60 months of payments, no free rides </li></ul>CCCS your partner in education,counseling and debt repayment
  58. 58. Housing Issues <ul><li>Regular Sale – FSBO or Realtor </li></ul><ul><li>Modification </li></ul><ul><li>Refinance </li></ul><ul><li>Short Sale – steps to be taken-what will I owe </li></ul><ul><li>REO – what does it mean </li></ul><ul><li>Foreclosure – what is the difference- what will I owe </li></ul><ul><li> </li></ul><ul><li>Do Not Hide, Do not avoid, reduce stress be open, </li></ul><ul><li>Understand your budget so you can talk knowledgably, seek free counsel </li></ul><ul><li>from CCCS. We are HUD certified to do housing counseling. </li></ul>CCCS your partner in education,counseling and debt repayment
  59. 59. Mortgage Crisis <ul><li>Where to turn for help </li></ul><ul><ul><li>WWW.CCCS-inc.org </li></ul></ul><ul><ul><li>WWW>Makinghomeaffordable.gov </li></ul></ul><ul><ul><li>WWW.MDHope.org </li></ul></ul>CCCS your partner in education,counseling and debt repayment
  60. 60. Mortgage Crisis <ul><li>Call Creditor </li></ul><ul><li>Report suspicious companies </li></ul><ul><li>Avoid Scams </li></ul><ul><li>If they ask for a fee up front </li></ul><ul><li>You pay them they will pay the mortgage </li></ul><ul><li>They can stop the foreclosure </li></ul>CCCS your partner in education,counseling and debt repayment
  61. 61. Monthly Mortgage Payments <ul><li>$ borrowed rate P&I Payment </li></ul><ul><ul><li>180,000 6.5 $1138 </li></ul></ul><ul><ul><li>200,000 6.5 $1264 </li></ul></ul><ul><ul><li>220,000 6.5 $1390 </li></ul></ul><ul><ul><li>240,000 6.5 $1516 </li></ul></ul><ul><ul><li>260,000 6.5 $1642 </li></ul></ul><ul><li>Note: payment above does not include, Property tax, HOA, insurance. </li></ul><ul><li>Under this analysis a $5000 increase in the amount financed will increase your payment by $31.50 P&I </li></ul>CCCS your partner in education,counseling and debt repayment
  62. 62. Projected Tax Savings <ul><li>$200,000 MTG @ 6.5%, 30 yr fixed </li></ul><ul><ul><ul><li>RENT BUY </li></ul></ul></ul><ul><li>Income $60,000 $ 60,000 </li></ul><ul><li>Standard deduction 5,000 </li></ul><ul><li>Interest Deduction 0 - $ 13,392 </li></ul><ul><li>Property tax 0 - $ 3500 </li></ul><ul><li>Taxable Income $55,000 $ 43,108 </li></ul><ul><li>Tax Due (@35% rate) $19,250 $ 15,088 </li></ul><ul><li>SAVINGS $4162 or $347 a month </li></ul><ul><li>NOTE THESE ARE PROJECTIONS ONLY,SEE YOUR TAX ADVISOR </li></ul>CCCS your partner in education,counseling and debt repayment
  63. 63. Avoid Predatory Lending <ul><li>Payday Loans – short term loans secured by post dated checks. High interest </li></ul><ul><li>Pawn shops – hold personal property as collateral, high interest and may lose property </li></ul><ul><li>Rent-to-own – pay weekly rent on furniture or appliances. Become owner after time. Extremely expensive. Interest rates 120+% </li></ul><ul><li>Auto purchases, $35 per week </li></ul>CCCS your partner in education,counseling and debt repayment
  64. 64. SCAMS <ul><li>S = Secure, don’t give out your personal information to others </li></ul><ul><li>C = Check your credit report on a regular basis </li></ul><ul><li>A = Always get a free credit report,review it and ask about mistakes </li></ul><ul><li>M = Maintain good records and review your credit cards statements closely </li></ul>CCCS your partner in education,counseling and debt repayment
  65. 65. FRAUD AND ID THEFT <ul><li>SCAMS </li></ul><ul><li>SEND $6000 FOR 5 MILLION </li></ul><ul><li>SCHREDDING YOUR DOCUMENTS </li></ul><ul><li>SOCIAL SECURITY NUMBERS </li></ul><ul><li>NO OVER THE PHONE NUMBERS </li></ul><ul><li>PROTECT PIN CODES, PEOPLE ARE WATCHING </li></ul>CCCS your partner in education,counseling and debt repayment
  66. 66. CREDIT REPAIR CLINICS <ul><li>KEEP AWAY FROM THEM </li></ul><ul><li>HEAVY FEES FOR NOTHING </li></ul><ul><li>PROMISES THEY DON’T KEEP </li></ul><ul><li>IMPROVE SCORES, YOU CAN DO THE SAME </li></ul><ul><li>IF IT SOUNDS TO GOOD TO BE TRUE IT ALMOST ALWAYS IS </li></ul>CCCS your partner in education,counseling and debt repayment
  67. 67. Expense reduction ideas <ul><li>Increase Insurance deductible </li></ul><ul><li>Insure only house not land </li></ul><ul><li>Unplug electric items </li></ul><ul><li>Compare fees </li></ul><ul><li>Shop Rates </li></ul><ul><li>www.money.com </li></ul><ul><li>www.bestrate.com </li></ul><ul><li>Flatten toilet paper </li></ul><ul><li>Coupon clipping </li></ul><ul><li>Florescent bulbs </li></ul><ul><li>Review deductions from pay </li></ul><ul><li>Turn jarred items upside down </li></ul><ul><li>Ketchup/vinegar Brass cleaner </li></ul><ul><li>Stale potatoes chips </li></ul><ul><li>Phones </li></ul>CCCS your partner in education,counseling and debt repayment
  68. 68. Expense reduction ideas Continued <ul><li>Reduce Fees </li></ul><ul><li>Money pits </li></ul><ul><ul><li>Big house </li></ul></ul><ul><ul><li>Big cars </li></ul></ul><ul><ul><li>Investment properties </li></ul></ul><ul><ul><li>Tight budgets means less non essentials </li></ul></ul><ul><ul><li>Cable TV </li></ul></ul><ul><ul><li>Lunches </li></ul></ul><ul><li>Hot water heater cover </li></ul><ul><li>Seal duct seams </li></ul><ul><li>Programmable thermostat </li></ul><ul><li>Seal drafty windows and doors </li></ul><ul><li>Fuel additives </li></ul>CCCS your partner in education,counseling and debt repayment
  69. 69. Avoid Fees <ul><li>Over limit $39 </li></ul><ul><li>Atm Fees $2.50 </li></ul><ul><li>Foreign C.C. fees </li></ul><ul><li>Late fees </li></ul><ul><li>Bad deposit fee </li></ul><ul><li>Checking Acct Fees </li></ul><ul><li>Bi weekly payment </li></ul><ul><li>Car rental Ins </li></ul><ul><li>Heavy bag fees </li></ul><ul><li>Paper ticket fees </li></ul><ul><li>Change flight fee </li></ul><ul><li>Talking to Airline </li></ul><ul><li>Gift card fee </li></ul><ul><li>Hotel fees, internet, resort fee, bell fees </li></ul><ul><li>Broker fee </li></ul>CCCS your partner in education,counseling and debt repayment
  70. 70. Saving Web sites <ul><li>Shopzilla.com </li></ul><ul><li>Pricegrabber.com </li></ul><ul><li>Sortprice.com </li></ul><ul><li>Couponcabin.com </li></ul><ul><li>Couponbug.com </li></ul><ul><li>Edeals.com </li></ul><ul><li>Couponmom.com </li></ul><ul><li>Salescircular.com </li></ul><ul><li>Dealnews.com </li></ul><ul><li>Bilshrink.com (cells) </li></ul><ul><li>Retailmenot.com(coupons </li></ul><ul><li>Accuquote.com(home ins) </li></ul><ul><li>Insurance.com(life) </li></ul><ul><li>Insweb.com(auto) </li></ul><ul><li>Myfico.com (credit score) </li></ul><ul><li>Healthinsurance.com </li></ul><ul><li>www.66ways.org </li></ul><ul><li>www.energynear.gov </li></ul><ul><li>Gasbuddy.com </li></ul><ul><li>Magazinepricesearch.com </li></ul><ul><li>Smartbargin.com </li></ul><ul><li>Annualcreditreport.com </li></ul><ul><li>www.moneyanswers.com </li></ul><ul><li>Ruelala.com </li></ul><ul><li>Bluefly.com </li></ul><ul><li>Overstock.com </li></ul><ul><li>bigwords.com(text books) </li></ul><ul><li>Gasprices.mapquest.com </li></ul><ul><li>Energystar.com </li></ul><ul><li>Gethuman.com(cust. Ser.) </li></ul><ul><li>Kayak.com(travel) </li></ul><ul><li>us.lastminutetravel.com </li></ul><ul><li>Taxcalculatorkiplinger.com </li></ul><ul><li>www.ssa.gov/estimator </li></ul><ul><li>www.energysavers.gov </li></ul><ul><li>http//tax-coalition.org/programs.cfm </li></ul>CCCS your partner in education,counseling and debt repayment
  71. 71. Websites Continued <ul><li>www.ftc.gov </li></ul><ul><li>www.quickenonline.com </li></ul><ul><li>www.livingto100.com </li></ul><ul><li>www.bankrate.org </li></ul><ul><li>www.kiplinger.com </li></ul><ul><li>www.thestreet.com </li></ul><ul><li>www.investinginbonds (bonds) </li></ul><ul><li>www.morningstar.com ( stocks and funds) </li></ul><ul><li>www.myfico.com (credit score) </li></ul><ul><li>www.kiplinger.com (tax calculator) </li></ul><ul><li>www.ssa.gov (Social Security Calculator) </li></ul><ul><li>www.ehealthinsurance.com (health insurance) </li></ul><ul><li>www.coverageforall.org (health insurance) </li></ul><ul><li>www.medicare.gov (Medicare) </li></ul><ul><li>www.accuquote.com (life ins) </li></ul><ul><li>www.insure.com (life ins) </li></ul><ul><li>www.insweb.com (auto ins) </li></ul><ul><li>www.accucoverage.com (home ins) </li></ul><ul><li>www.naic.org/cis (commissioner cust. service complaints for ins) </li></ul><ul><li>www.makinghomesaffordable.gov </li></ul><ul><li>www.cccs-inc.org </li></ul>CCCS your partner in education,counseling and debt repayment
  72. 72. Contact Information Consumer Credit Counseling Service of MD and DE, Inc. <ul><li>Jim Harris 410-7472050 </li></ul><ul><li>CCCS - 1-800 642 2227 </li></ul><ul><li>CCCS Website www.CCCS-inc.org </li></ul><ul><li>Email - [email_address] </li></ul>CCCS your partner in education,counseling and debt repayment

×