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Danny Singh's Financial Seminar on the Student Loans and Credit Crisis in America

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Danny Singh is the teen who refinanced his mom's house and car at 14 and has never been late on any type of bill for the past 8 years. He now hopes to raise the awareness of the student loans crisis and teach consumers the most effective methods to repay their debts in months instead of years while having enough money for everyday expenses and retirement. For this reason, he is doing financial seminars and has published a book titled "Finance 101: The Whiz Kid's Perfect Credit Guide." All profits are donated to the Children's National Medical Center for HIV treatment research. Danny has been recognized by Governor Rick Perry, First Lady Anita Perry, Seminole County Commissioner Bob Dallari, Florida State Representative Jason Brodeur, and Senator Marco Rubio. Please contact him using www.facebook.com/studentsfinance. Thank you.

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Danny Singh's Financial Seminar on the Student Loans and Credit Crisis in America

  1. 1. Understanding CreditTips For A Successful Financial Future... Your Future! Danny Singh
  2. 2. Disclaimer● Any advice given is based on personal financial experience.● Some information may be influenced by personal thoughts. ○ Creditors should never be cheated no matter what the circumstances or personal hardships.● People may have different perspectives on the information presented and advice given.
  3. 3. Why Is Good Financial Behavior Important? ● Become rich.  ● Pay little or no interest.  ● Guarantees cheaper bills, better lifestyle, and no stress.      ● Getting better jobs: Make higher incomes.  ● Secures familys financial future.  ● Good financial behavior can be shown through credit.
  4. 4. Credit Being Granted● Creditors grant loans. Any money being paid back. - Credit cards. - Automobile loans. - Mortgages- home loans. - Personal loans including student loans.● Creditor is a financial institution or bank. -Financial institution: Ford Motor Credit. -Bank: Wells Fargo, Bank of America.● Purpose of credit: Show utilization. -Spending trends. -Payment trends.
  5. 5. Having Credit● As a possessive noun. ○ Consumer refers to their good, bad, or limited credit history. ○ Example: "I have bad credit." ○ Literal form: "I have bad credit history."● Credit history = Creditworthiness.● Goal: Demonstrate high creditworthiness level. ○ Creditworthiness = Trustworthiness. ○ Credit scores = creditworthiness level.● Credit cards are needed.● Companies must know you will not cheat them: Electricity, car, water, insurance, cell phone, house, car, etc.
  6. 6. Bad Credit Guarantees Paying HIGH Interest And Fees
  7. 7. Keep Getting Denied For Credit● Credit union or bank = Get secured credit card. ○ Secured credit card: Security deposit = Spending limit. ○ Security deposits: Refundable if account is closed or upgraded to unsecured account.● Personal recommendation: Wells Fargo secured credit card. ○ Cheapest secured credit card- $18 annual fee. See if credit union can offer cheaper or no fee. After year of history, ask if annual fee can be removed/reduced. Account can be ungraded to unsecured = Improves credit.
  8. 8. Establish Good Credit1. Check credit report. Annualcreditreport.com. Verify accuracyof personal information.2. Source of income: Savings or a job.3. Apply for credit card. If denied, call for reconsideration. ○ Department store cards are easier to get than bank cards. ○ Use Financeglobe.com. No annual fee cards!4. Do not apply for many credit cards at once.     2-3 per every 2 years. ○ Credit checks (inquiries) lower credit scores. ○ High risk to creditors- Desperate for money.5. Use cards once every six months. No carrying balances. BuildLONG HISTORY, dont close accounts unless expensive annual fee.
  9. 9. Establish Good Credit (Continued)6. No job? (Dont be in so much debt)Before becoming late. ○ Contact non-profit credit counseling agency. Google search and read reviews. ○ Contact loan issuer, ask for more time to pay- Defer. ○ Do not file bankruptcy or debt settlement. ○ Borrow money from family. ○ Get a new loan and transfer balances. ○ Use any savings or assets. ○ Keep looking for job aggressively!
  10. 10. Fair Isaac Corporation Credit Scores (FICO Scores)  ● 3 scores (300 - 850), one from each bureau. ● Scores = Rankings.  ● Extra information = Shows likelihood to pay back loans. ○ 660 and above = Very likely to pay back loans. Cheap interest. ○ 659 and below = Very unlikely to pay back loans. High interest.  ● Order only on MyFico.com. Must pay everytime. ○ Other websites offering credit scores = FAKO scores. Tries to replicate FICO and not the same.
  11. 11. Credit Bureaus● Private companies. -Collects financial information- loans only. -Does not collect checking, savings, IRAs, 401K. -Collects personal information such as on applications.● Federal trade commission monitors them.● When consumer applies for credit, creditors pay fees to one or all of the credit bureaus. Bureaus make money. -Obtains credit reports and credit scores.
  12. 12. Not a credit bureau but still a consumer reporting agency. ○ Go to consumerdebit.com - Free report once a year. ○ Only records deposit accounts- checking and savings. ○ Detect fraudulent or negative deposit accounts. ○ Does not rank using score. ○ Should be checked regularly.
  13. 13. Student Loans  They cannot be eliminated with bankruptcy EVER.   Not paying them = No tax refunds. Bad credit. No employment.  
  14. 14.  
  15. 15. Student Loans1. Accept subsidized (interest free) loans.2. Fewer classes. Less debt = Less stress = More success! 3. Save money for 4 year or grad school- Community college.  4. Build excellent credit. ○ Call issuer for lower interest rate every 3-4 months. 5. Transfer student loans to credit union credit cards. ○ Compare interest rates and no high balance transfer fees. 6. Before becoming late, consider options on handout.  ○ Extended and income based repayments offer lowest monthly payments but most interest.
  16. 16. 7. Extra money = Pay unsubsidized loans. Stafford loans!8. Automatic payments = Interest discounts. 9. If no extra fees (call issuers), pay student loan withcredit card. ● Rewards save money. ● Pay off credit card immediately = No interest. 10. Deduct student loan interest from taxes. $2,500 11. Do not invest money heavily. Instead, pay studentloans. 12. Apply for scholarships and grants. Scholarships availableto honors students.
  17. 17. If possible, buy books from Amazon, Betterworld,and online stores before buying at the book store. Dont drop classes after add/drop period. $300 - $400 goes to garbage and STILL compounds with INTEREST. Pay down debt before having kids. Do extended repayment plan or income-based repayment = Lowest monthly payments.
  18. 18. AVOID PRIVATE AND NON-CERTIFIED (UNCERTIFIED)STUDENT LOANS! FROMBANKS AND SALLIE MAE!16%, 17%, 18%
  19. 19. President Obamas Student Loan Reform Act Signed into law 2010.  1. Can consolidate and refinance student loans =Interest discounts.    -One monthly payment.2. No payments above 10% of income.3. Remaining student loan debts drop after 20 years.No longer 25.4. Teachers, nurses, members of armed forces, publicservice careers: Drops in 10 years.
  20. 20. Fraud And Phishing (Evil!)   Scammers try to get information by anymeans- fake websites, fake phone calls, fake letters, fake facebooks, etc.Ruin credit- Student loans, credit cards, bank accounts, anything! Victim? Change social security number Freeze credit Police
  21. 21. Retirement!If employed, open up Roth IRA with credit union or community bank After tax dollars go into Roth IRA Cannot be deducted from taxesYou can take money (not earnings) before retirement without 10% tax penalty and income taxes
  22. 22. NEVER EVER! PLEASE SPREAD MESSAGE! EVEN IF YOU HAVE BAD CREDIT  NO PAYDAY LOANS! NO INTERNET BAD CREDIT LOANS! NO BAD CREDIT CAR DEALERSHIPS SUCH AS DRIVE TIME!   NO CAR TITLE LOANS! NO PINK SLIP LOANS!   NO PAWN SHOP LOANS!   NO CASH ADVANCE LOANS!   NO 36%, 59%, 79% OR ANNUAL FEE CREDIT CARDS!  NO FOR-PROFIT SCHOOLS!   DO NOT WITHDRAW MONEY FROM IRA OR 401K OR 403B! UNTIL RETIREMENT, LOAN AGAINST RETIREMENT IS OKAY
  23. 23. Closing RemarksEconomy cannot improve. Interest rates will not drop. Employment will not improve. Banks will not stop imposing fees. (Bank of America fee). Low character. Bankruptcy/settlement is easy = Not honorable. Do not have to be smart to have excellent credit.  No matter what hardships, circumstances, debts, interest rates.Remain motivated! You will appreciate it!
  24. 24. To view presentation, please go to:www.facebook.com/studentsfinance

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