1 brought to you by michigan’s assistive technology program at mdrc
TRANSCRIPT
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Brought to you by Michigan’s Assistive Technology Program at MDRC.
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Use the chat function on the right hand side.
Questions and comments are encouraged and expected!
The session is being recorded. We will start recording now.
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How to Evaluate the Real Cost and Avoid the Pitfalls
November 10, 2011Glenn Ashley, UCP MichiganKenneth Ashley, Free Agent
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Don’t throw it away!
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Located in low income neighborhoods. Why?? Easy for people to find the “store”.
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Borrow $100, fee is $15 for 2 weeks Interest rate? 15%Annual Interest Rate
• 15 X 26 = 391% APR
Source: Michigan Attorney General www.michigan.gov/ag
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Roll the $100 loan forward every 2 weeks, until you reach the maximum allowed by law.
How much will you owe? • $676
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Rip Off!!!!!(Not a wise use of your money!)
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How many times more does it cost to buy from Rent to Own?
Pay $1,000 for a $300 computer?
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Just $15 per week for 18 months • How much did his $300
computer cost him? • $15 X 18 = $270?
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Pay for 18 months, not 18 weeks! • 18 months is 78
weeks• $1,170 for the $300
computer
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Please use the public chat area to type your answers and comments.
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Michigan Assistive Technology Loan Fund
UCP Michigan4970 Northwind Drive, Suite 102East Lansing, MI 48823Phone 517-203-1200Ask for Michele
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At $10 per week, 7% interest, • Pay it off in 7 months • Costs you $309
Congratulations, you have saved $861!
(Note – not all computer purchases are eligible for loans from MATLF.)
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They have research to back it up• Suze Orman • Dave Ramsey• Larry Burkett
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Difference between safe and scary?
Advertisers on TV - Run Away!
An expert who is selling you a product? On commission?
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Find a local organization through the National Foundation for Credit Counseling (NFCC)• Phone: 1-800-388-2227• Website: www.nfcc.org
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Bad Idea: Paying someone else to do what you
can do yourself.Worse idea: Paying to remove accurate info from
your credit report. (It’s a scam.)Even worse idea: Lying to remove accurate information
It’s a federal crime.
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We have an astounding power to wipe out thousands of dollars of your debt.
Most accounts have a one-time settlement rate that’s preapproved (typically 15 to 35 percent on credit card debt).
-from Reader's Digest magazine October 2011 , p 44.ReadersDigest.com
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A lot of agencies buy debt for pennies on the dollar, so always start your settlement offer low, maybe 25 cents on the dollar.
Say something like “I have $200 that I can apply toward this debt. Will you accept that as payment in full?”
If I say no, ask what I’m willing to accept as a settlement and negotiate from there.
-from Reader's Digest magazine October 2011, p 44.ReadersDigest.com
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Debt is the symptom Over-spending and under-saving is the
problem Lower payment for longer term =
More money for the Debt Con. Company
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AmeriDebt – founded by Andrus Pukke Hidden fees and deceptive practices took
$170 million out of customers’ pockets. (FTC)
It is now out of business. (similar ones pop up and disappear)
Place to check:Attorney General’s Office
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If I threaten to have you arrested, use profanity, or call before 8 a.m. or after 9 p.m.
Those are violations of the Fair Debt Collection Practices Act.
Report me to your state attorney general's office (naag.org) and the Federal Trade Commission (ftc.gov).
-from Reader's Digest magazine October 2011, p 45.ReadersDigest.com
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Ramsey says that “Consumer Credit” is the best.
Your credit is still trash.
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To benefit from Debt Consolidation Must change your spending habits Who can teach you to do that?
• Suze Orman• Dave Ramsey• Larry Burkett books
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Late paymentsMaxing out credit cardsThe Big One:
• Buying things you don’t need or can’t afford.
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How to turn them off• Go to: OptOutPrescreen.com
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Costs you how much? What do you get for it?
Yes, I would like to protect my account by enrolling in Payment Aid. By providing my initials, I have received the Payment Aid Program Summary on the enclosed insert and I want to purchase this optional program. Bill my account $0.87 per $100 of my New Balance until I cancel. If you cancel this within the first 30 days, you will not be billed.
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If you owe $1000, you pay $8.70 for the insurance.
Your minimum payment is $10.00.
You have almost
doubled your payment for no good reason.
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Ways companies get around it• Promoting business credit cards
for consumers
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Insurance from bank to cover a loan• Same as Credit
Card insurance• Buy term life
insurance instead
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What is the Michigan Lottery?• A tax on people
who can’t do math.
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Infomercials: “Secrets to Get Rich”
Guess who gets rich? Better Idea: Get Rich Slowly
• www.GetRichSlowly.org
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Buy a brand new car• New $28,000 car will lose
about $17,000 of value in the first 4 years.
• A $100 bill once a week for 4 years.
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Do business with a local bank or credit union
Check people out
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Opt out of Credit Card offersNever open junk mail or spam
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From: Credit Cards <[email protected]>Sent: Thu, November 3, 2011 1:12:39 PMSubject: Why are you waiting? Make life easier with a credit card
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Spend less. Less than your income!!!
Pay your bills. On time!
Pay off your debt.Clean up your own credit bureau
records.
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Michigan Attorney General Scam Alerts:http://www.michigan.gov/ag
http://www.GetRichSlowly.org http://www.MissingManual.com/feedback
- choose “Your Money” http://www.DaveRamsey.com http://www.SuzeOrman.com http://www.threerules.org
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“The art is not in making money, but in keeping it.”- Proverb
“It's not your salary that makes you rich, it's your spending habits.”- Charles A. Jaffe