Help and Hope for Your FinancesHelp and Hope for Your Finances
Out of Slavery: Life After DebtOut of Slavery: Life After D...
July, 2013
ContentsContents
 Life after DebtLife after Debt
 DefinitionsDefinitions
 Debt in AmericaDebt in America
 G...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
 Debt:Debt: An obligation of a consumer to payA...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
Average car payment is over $400 per month.
Aver...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
The average U.S. household's total mortgage,
cre...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
God’s View on Debt
“The rich rules over the poor...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
 We don’t plan for expenses.We don’t plan for e...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
Why do we use debt?
We need to use this But we w...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
When surveyed, the Forbes 400
were asked, “What ...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
 How much could you…How much could you…
 Spend...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
 You will get out of debtYou will get out of de...
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
 ListList allall your consumer debtsyour consum...
July, 2013
Item Total Payoff
Minimum
Payment
New
Payment
Target
Payments
Remaining
Target
Cumulative
Payments
Debt #1 300....
July, 2013
Item Total Payoff
Minimum
Payment
New
Payment
Target
Payments
Remaining
Target
Cumulative
Payments
Debt #1 300....
July, 2013
Item Total Payoff
Minimum
Payment
New
Payment
Target
Payments
Remaining
Target
Cumulative
Payments
Debt #2 340....
July, 2013
Out of Slavery: Life After DebtOut of Slavery: Life After Debt
 Stop borrowing money! You can not get out of d...
July, 2013
Conclusion: So What?Conclusion: So What?
“Debt is dumb. Most normal people are just plain
broke because they ar...
About the AuthorAbout the Author
July, 2013 18Help and Hope for Your Finances - www.figueroafinancial.com
José R. Figueroa...
July, 2013
Figueroa Financial: Contact InformationFigueroa Financial: Contact Information
Website: www.figueroafinancial.c...
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Out of Slavery: Life After Debt

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Is there life after debt? You don't have to remain in debt for the rest of your life. There is a way out and you too can be debt free.

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Out of Slavery: Life After Debt

  1. 1. Help and Hope for Your FinancesHelp and Hope for Your Finances Out of Slavery: Life After DebtOut of Slavery: Life After Debt José R. FigueroaJosé R. Figueroa July, 2013July, 2013 www.figueroafinancial.comwww.figueroafinancial.com
  2. 2. July, 2013 ContentsContents  Life after DebtLife after Debt  DefinitionsDefinitions  Debt in AmericaDebt in America  God’s View on DebtGod’s View on Debt  Why do we use Debt?Why do we use Debt?  What if?What if?  Breaking the ChainsBreaking the Chains  The Debt SnowballThe Debt Snowball  Final TipsFinal Tips Help and Hope for Your Finances - www.figueroafinancial.com 2
  3. 3. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt  Debt:Debt: An obligation of a consumer to payAn obligation of a consumer to pay money, whether reduced to judgment or not.money, whether reduced to judgment or not.  Consumer:Consumer: A person who owes a debt.A person who owes a debt.  Creditor:Creditor: A person who extends credit to aA person who extends credit to a consumer or is owed a debt by a consumer.consumer or is owed a debt by a consumer. Source: Fair Debt Collection Practices Act Definitions Help and Hope for Your Finances - www.figueroafinancial.com 3
  4. 4. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt Average car payment is over $400 per month. Average credit card debt is over $7K per household. 46% of Americans surveyed say they're suffering from debt-related stress according to an AP poll. In 2007, total consumer debt was $2.5 trillion. Consumer overall indebtedness (including mortgages) increased from $1.4 trillion to $11.5 trillion from 1980 to 2005. The U.S. national debt now exceeds $16 trillion. In 2008 it stood at only $9 Trillion. Over 200,000 students graduated from American colleges w/ over $40,000 in student loan debt in 2007-08. Debt in America Today Help and Hope for Your Finances - www.figueroafinancial.com 4
  5. 5. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt The average U.S. household's total mortgage, credit card & other debt is 122% of annual disposable income. Debt in America Today The American Church is $33 billion in debt. Fees currently account for a whopping 48% of all revenue for credit card issuers -that's up from 31% 10 yrs ago. Help and Hope for Your Finances - www.figueroafinancial.com 5
  6. 6. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt God’s View on Debt “The rich rules over the poor, and the borrower is the slave of the lender.” Proverbs 22:7 (ESV) Help and Hope for Your Finances - www.figueroafinancial.com 6
  7. 7. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt  We don’t plan for expenses.We don’t plan for expenses.  Lack of control over our money when we don’t haveLack of control over our money when we don’t have a cash flow plan (i.e., a budget). It seems we don’ta cash flow plan (i.e., a budget). It seems we don’t have enough.have enough.  Lack of discipline for saving money for majorLack of discipline for saving money for major expenses. We mistake a credit line for an emergencyexpenses. We mistake a credit line for an emergency fund.fund.  We seek to take advantage of deals (airlineWe seek to take advantage of deals (airline miles, points for other purchases, etc.).miles, points for other purchases, etc.).  We are influenced by the culture.We are influenced by the culture.  We accept that paying interest is a way of life.We accept that paying interest is a way of life. Why do we use debt? Help and Hope for Your Finances - www.figueroafinancial.com 7
  8. 8. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt Why do we use debt? We need to use this But we want to use this We want it now!!! Help and Hope for Your Finances - www.figueroafinancial.com 8
  9. 9. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt When surveyed, the Forbes 400 were asked, “What is the most important key to building wealth?” 75% replied that becoming and staying debt free was the number one key to wealth building. Help and Hope for Your Finances - www.figueroafinancial.com 9
  10. 10. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt  How much could you…How much could you…  SpendSpend  SaveSave  InvestInvest  Give?Give? What if you didn’t have any payments? Help and Hope for Your Finances - www.figueroafinancial.com 10
  11. 11. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt  You will get out of debtYou will get out of debt when:when:  YouYou admitadmit that using debtthat using debt will not bring youwill not bring you prosperity.prosperity.  You getYou get sicksick to yourto your stomach when you realizestomach when you realize how much interest you arehow much interest you are paying.paying.  You getYou get tiredtired of carryingof carrying the debt burden.the debt burden. Breaking the Chains “I have had it!!!!” Help and Hope for Your Finances - www.figueroafinancial.com 11
  12. 12. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt  ListList allall your consumer debtsyour consumer debts smallestsmallest toto largest.largest.  Pay minimum payments on everything but thePay minimum payments on everything but the smallest one.smallest one.  Use anything you can squeeze out of yourUse anything you can squeeze out of your budget to pay extra on the smallest debt.budget to pay extra on the smallest debt.  When that smallest debt is paid off apply thatWhen that smallest debt is paid off apply that payment to the next debt in line.payment to the next debt in line.  This will give you a plan and will help youThis will give you a plan and will help you maintain the focus required tomaintain the focus required to pay off allpay off all ofof your consumer debt.your consumer debt. The Debt Snowball Help and Hope for Your Finances - www.figueroafinancial.com 12
  13. 13. July, 2013 Item Total Payoff Minimum Payment New Payment Target Payments Remaining Target Cumulative Payments Debt #1 300.00 30.00 30.00 10 10 Debt #2 487.00 49.00 49.00 10 20 Debt #3 789.00 80.00 80.00 10 30 Debt #4 1,235.00 130.00 130.00 10 39 Debt #5 1,500.00 150.00 150.00 10 49 Debt #6 6,800.00 300.00 300.00 23 72 Totals 11,111.00 739.00 739.00 72 Out of Slavery: Life After DebtOut of Slavery: Life After Debt The Debt Snowball - Example Help and Hope for Your Finances - www.figueroafinancial.com 13
  14. 14. July, 2013 Item Total Payoff Minimum Payment New Payment Target Payments Remaining Target Cumulative Payments Debt #1 300.00 30.00 100.00 3 3 Debt #2 487.00 49.00 49.00 10 13 Debt #3 789.00 80.00 80.00 10 23 Debt #4 1,235.00 130.00 130.00 10 32 Debt #5 1,500.00 150.00 150.00 10 42 Debt #6 6,800.00 300.00 300.00 23 65 Totals 11,111.00 739.00 809.00 65 Out of Slavery: Life After DebtOut of Slavery: Life After Debt The Debt Snowball - Example Help and Hope for Your Finances - www.figueroafinancial.com 14
  15. 15. July, 2013 Item Total Payoff Minimum Payment New Payment Target Payments Remaining Target Cumulative Payments Debt #2 340.00 49.00 149.00 2 2 Debt #3 549.00 80.00 80.00 7 9 Debt #4 845.00 130.00 130.00 7 16 Debt #5 1,050.00 150.00 150.00 7 23 Debt #6 5,900.00 300.00 300.00 20 42 Totals 8,684.00 709.00 809.00 42 Out of Slavery: Life After DebtOut of Slavery: Life After Debt The Debt Snowball - Example Help and Hope for Your Finances - www.figueroafinancial.com 15
  16. 16. July, 2013 Out of Slavery: Life After DebtOut of Slavery: Life After Debt  Stop borrowing money! You can not get out of debt by borrowingStop borrowing money! You can not get out of debt by borrowing your way out.your way out.  Consider taking an extra job as aConsider taking an extra job as a temporarytemporary measure to increasemeasure to increase your income.your income.  ConsiderConsider selling assetsselling assets that could kick-start your debt snowball.that could kick-start your debt snowball.  Stop contributing to retirement plans on aStop contributing to retirement plans on a temporarytemporary basis inbasis in order to increase your cash floworder to increase your cash flow whilewhile you get out of debt.you get out of debt.  Don’t fall prey to debt management or debt consolidationDon’t fall prey to debt management or debt consolidation scams.scams. You can do this!You can do this!  Cut up your credit cards and promise to yourself that you willCut up your credit cards and promise to yourself that you will not use them again.not use them again.  When you payoff the balance on each account,When you payoff the balance on each account, close theclose the account!account! Final Tips Help and Hope for Your Finances - www.figueroafinancial.com 16
  17. 17. July, 2013 Conclusion: So What?Conclusion: So What? “Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree.” Dave Ramsey Help and Hope for Your Finances - www.figueroafinancial.com 17
  18. 18. About the AuthorAbout the Author July, 2013 18Help and Hope for Your Finances - www.figueroafinancial.com José R. Figueroa is a Personal Finance Coach/Blogger @ Figueroa Financial: Help and Hope for Your Finances. He is also the author of the e-book 7 Principles for Financial Success now available @ Amazon.
  19. 19. July, 2013 Figueroa Financial: Contact InformationFigueroa Financial: Contact Information Website: www.figueroafinancial.com e-mail: jose.figueroa310@gmail.com Facebook: www.facebook.com/figueroafinancial Twitter: https://twitter.com/FigueroaFin Linkedin: http://www.linkedin.com/in/jrfigueroa Google+: https://plus.google.com/u/0/b/111459341392513036380/111459341392513036380/posts Pinterest: http://pinterest.com/jfigueroa310/financial-coaching/ Help and Hope for Your Finances - www.figueroafinancial.com 19

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