Love Your Money : Getting out of Debt Jayne McBurney, MS Family & Consumer Sciences Agent NC Highway 210 Smithfield

Statistics 2008: The Averages more than $8,000 in credit card debt 2.7 bank credit cards 3.8 retail credit cards 1.1 debit cards Spends $1.22 for each dollar they earn

Double Trouble

Debt in daily terms (for payoff in 3 years)

The Steps STOP new purchases ASSESS-how I got into this TRACK - write EVERYTHING down SMART goals FIND places to save FIX pay down credit or save TALK to ALL members of household

TRACK your spending Write down EVERYTHING you spend Use a calendar with due dates –A wake up call

Find $ Cable….movie packages –Rent movies, save $25-$50/mo Internet –If you have a smart phone, you may not need Internet/wireless service at home, save $45/mo Nails/ Haircut…can you wait a week? –Have hair and nails done every ten days, save $50/mo Daily lunch, at a modest $5 = $100 a month Pack Lunch 3 days a week, save $60/mo Vending machine: 1.25, $25/month –Bring snacks from home in a cooler, save $50/mo Memberships, Subscriptions, Services Barter, Trade, Sell

Fix Debt Yourself Pay down credit! GOAL: Protect Credit Score

Power Pay way.... Three repayment options: –Highest interest rate first (in sequence) –Lowest balance first –Shortest payoff term first Can add one-time or periodic additional payments (e.g., bonus, tax refund) Savings will vary according to length of debt, number of creditors, APRs, etc.

Talk Communicate with partner about spending issues and financial goals How will we manage?

Housing 25% - 33% of gross pay Vehicle less than 15% of gross including insurance, gas and maintenance Monthly debts Should be less than 15-20% of net *about 35% left

What is my Credit Score? Score range: Use the Credit Education tab

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