Debt Freedom Session 2 – Confess Debt Freedom. Debt freedom is more than just an idea! “Be strong and very courageous. Be careful to obey all the law.

Slides:

Advertisements

Similar presentations

March 29, 2011 Dale Ball, eni. Understanding how credit scores are determined. Understanding how consumers actions impact their credit scores.

Advertisements

Lesson 9 Fixing Your Credit.

Good vs. Bad Credit Credit – the ability to borrow money and pay it back later. Good credit means: Lenders want to loan money to you because you have.

Chapter 19 Lesson 2 Budgeting Your money.

Debt is when you owe someone money. The someone can be a bank (like a house loanalso known as a mortgage, or a car loan), OR the someone can be a credit.

Mrs. Wilson Business Essentials. This lesson provides information about money management basics and the reports used to measure financial progress.

Introduction to Business & marketing

Credit Matters If you ever want: – A job – An apartment – A car – Insurance – Education or training after high school – Affordable utilities – Affordable.

RAISE YOUR CREDIT SCORE 50 POINTS IN FORTY-FIVE DAYS Bruce Gustafson (303) Crestline/Universal Lending.

Bankruptcy. Importance of Numbers What do you know about bankruptcy?

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

Teens 2 lesson seven understanding credit presentation slides 04/09.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Establishing Credit Presented By:. What is credit? Credit is more than a plastic card you use to buy things --- it is your financial trustworthiness.

Good Debt vs. Bad Debt Middle School Financial Literacy #5.

GOOD CREDIT IS THE TICKET DO YOU KNOW HOW TO ACHIEVE IT?

Credit Cards. Credit WHAT IS CREDIT? $ It is a loan $ It is an agreement $ It comes with fees, interests & other charges Credit is a debt; it is NOT income!!!

Lesson 1: Personal Finance. Agenda  Budgeting  Video  Review  Credit Cards and Credit Scores  Scholarships.

  center-com/781-understanding-your-credit-score- video.htm#mkcpgn=snag1

The importance of understanding credit reports The choices you make today directly impact your future. Your credit score can influence how much interest.

BUDGETING Financing for Students The Basics of Financing for Students.

CREDIT How do you build credit? Mr. Jones and Mrs. Smith make the same amount of money, but on loans, Mr. Jones pays more. Why? What may determine if you.

1.0Self Assessment and Measuring Financial Health.

Lesson 16: Using Credit.

Card A. Risk 12/ Lance L. Lancer12/12 Credit: History, Types, Dangers Chapter 10.

Section 4C Loan Payments, and Credit Cards Pages C.

Warm up Problem Electric Bills: August $131 September $134 October $ 145 November $ 175 December $201 Calculate the average monthly electric bill for the.

Credit: History, Types, Dangers

 Buying on credit = buy goods and services now and pay for them later (usually with interest)  Having credit depends on the suppliers’ confidence in.

Personal Finance QUIZ REVIEW – CREDIT CARDS, BANK ACCOUNTS, BUDGETING, ETC.

Section 4D Loan Payments, and Credit Cards Pages

Fifth Third Bank, Member FDIC. Eisenhower High School September 15, 2013.

Credit Pros and Cons Unit 1 Lesson 4. Introduction Credit use carries an important responsibility. Credit use carries an important responsibility. When.

Financial Literacy Michael Bernard, CFP, ChFC, EA.

Credit Scoring … Protecting Your Future and your Capital.

Debt Freedom Session 1 – Change Your Mindset. Average American family has $9,000 in credit card debt Debt is stealing our freedom The rich rules over.

Using credit is a way of life. People use credit online and for everyday purposes. Some do it so they don’t have to carry cash. Some use it to buy things.

Personal Financial Planning Steps in Creating the Plan.

Using Credit SSEPF4.a, SSEPF4.b, SSEPF4.c. Loans and Credit Cards: Buy Now, Pay Later The U.S. economy runs on credit. Credit – The ability to obtain.

Bell Work, Wed. 5/13 O Where is Shell going to start drilling for oil? O Who created the first Presidential Library? O What technology are firefighters.

Credit, Credit Cards, Scores and Compound Interest Today, you will need: Spirals, writing utensils, brains. Please, and thank you.

Calculating Cost Of Credit. Types of Credit Closed-End Credit ◦ One-time loan that you pay back over a specified period of time in payments of equal amounts.

Credit Management 1. Two – Day Seminar Day One Establishing & Maintaining Credit Credit Scoring Day Two Loan Agreement Terms & Conditions Managing Credit.

Learning Objective # 3 Develop a personal balance sheet and cash flow statement.

Presented By: Mick Bernard – President & Founder Twitter.com/911CreditPro Facebook.com/CreditStrategies

Agribusiness. What is agribusiness? Sector of the industry that combines agricultural production and business decisions. Important to farmers because.

Credit. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc. Creditor A person or company to.

A Dealing with Dollar $ workshop Understanding Credit and Debt.

CHAPTER 26 – HOW TO GET AND KEEP CREDIT What I need to know…

What’s a Credit Report? From age 18 on, agencies collect data about your spending habits. Monitor your ability to handle risks (i.e. loans I installment.

10 Points Question- What is the definition of Character?

Credit – You’re in Charge.  Credit – the ability to borrow money in return for a promise of future payment. ◦ Credit has the opposite trade-off as saving.

Establishing Credit Presented By:. Credit is more than a plastic card you use to buy things --- it is your financial trustworthiness. What is credit?

What Does it Mean?. Predicts the statistical chance of a consumer becoming 90 days late or more on a particular loan obligation Each score is specific.

Let’s Talk About Money & how make it makes cents!.

“When I was young, people lived from paycheck to paycheck. Today, it seems like they live from credit card payment to credit card payment.” - Robert Kiyosaki.

The Facts on Credit Those who are wise never pay interest… they earn it!

Why Credit Matters?. Do Now  What was your last purchase and how did you pay for it? Did you use cash, debit credit or check?  What are the differences.

How to Improve Your Credit Score Who Determines your Score? Three Credit Bureaus:

1.  Three credit reporting bureaus:  Equifax  Trans Union  Experian  Information is not shared among bureaus unless required by law.  Not all creditors.

Making the Most of Your Credit An Advantis Credit Union Better Together Workshop.

Money Management: Part 2. Homework (Passport page 22)

Borrowing Econ 10/13.

Who Determines your Score? Three Credit Bureaus:

Credit score overview Understanding how credit scores are determined.

The Good, The Bad, and The Ugly

How to keep them healthy and maintain them for life

YOUR MONEY, YOUR FUTURE GAME OF LOANS

Personal Finances Chapter 17

Build Your CREDIT = Build Your ASSET

Presentation transcript:

Debt Freedom Session 2 – Confess Debt Freedom

Debt freedom is more than just an idea! “Be strong and very courageous. Be careful to obey all the law my servant Moses gave you; do not turn from it to the right or to the left, that you may be successful wherever you go.” Joshua 1:7 Spend Less… Save More… Attack Debt Debt Snowball Payment Frequency Consolidation Harvest discretionary spending

Visualize What would your lifestyle be like if you were truly debt free? What could you do with the money that you’re now spending on servicing your debt? Spend it? Give it? Save it? Invest it?

Confess What are you willing to do to become debt free? Reallocate discretionary spending to pay off debt? Postpone something you want to do now? Work overtime or get a part-time job? Use savings? Learn some new debt payment strategies? What are you willing to do to remain debt free? Pay cash or don’t buy it? Change your spending habits? Destroy credit cards? Change certain friends and associates Pray for strength, wisdom and guidance? “Submit yourselves, then, to God. Resist the devil, and he will flee from you.” James 4:7

Declare I will be debt free (except for home mortgage) by: ______________ I will be totally debt free by: ______________ (Realistic Date) Your Debt Freedom Pledge!

Debt and You How are you using debt now? Discretionary spending? Make ends meet (food, clothing, shelter, medical)? Appreciating assets? Depreciating assets? Experiences, vacation and fun? Education? Christmas or birthday gifting? Start a business?

Debt and You DON’T buy it! Pay cash for it! Downgrade your expectations! Delay your gratifications! Work for it! Get gifted for it! What are you best (and most realistic) alternatives to debt?

Debt and Your Credit Rating Your debt-to-income (DTI) ratio: Total monthly debt divided by total monthly income Monthly debt = $1,200 Monthly income= $4,000 DTI = 30% Why is DTI important? DTI > 40% is harmful to your credit rating Won’t be eligible to borrow, or Borrowing costs (interest rate) will be much higher than usual Only 2 ways to improve your DTI Increase your income or reduce your debt!

Debt and Your Credit Rating Your credit score (FICO) is calculated based on weights 35% - payment history (on-time payments are good) 30% - amounts owed (keep utilization below 30%) 15% - length of credit history (longer is better) 10% - new credit inquiries (recent inquiries is bad) 10% - types of credit (varied mix is good) Credit categories used by banks Super Prime Prime Sub Prime Punitive Missed payments, exceed limits Promotional New customers

Debt Behavior and Your FICO Maxing out your card Costs points Skipping a payment cycle (30-45 days late) Costs points Debt settlements or short sales Costs points Foreclosure Costs points Bankruptcy Costs points

Your Credit Report

Your Credit Report (cont’)

Debt and Your Expenses (homework) List ALL of your monthly expenses Categorize by “essential”, discretionary” and “on the bubble” Total each category

Debt Inventory (homework) List all of your debt Identify rate, balance due, minimum payments and payoff months

Confess Debt Freedom Summary Must believe and declare debt freedom before you see it. It takes work to become and remain debt free There are alternatives to debt DTI and FICO impact your freedom Next Session Freedom Oil: essential resource Debt snowball: a key tool Execution strategies Credit cards Installment Mortgage Auto loans Student loans