debt reduction

DEBT REDUCTIONFINANCIAL EDUCATION SERIES

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AGENDA• Top things you should know

• Where do you stand?

• Total Money Makeover

• Eliminating credit card debt

• Tips to get your spending under control

• Your questions

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TOP THINGS YOU SHOULD KNOW1. Americans are loaded with credit card debt.

2. Some debt is good.

3. Some debt is bad.

4. Get a handle on your spending.

5. Pay off your highest-rate debts first.

6. Don't fall into the minimum trap.

7. Watch where you borrow.

8. Expect the unexpected.

9. Don't be so quick to pay down your mortgage.

10. Get help as soon as you need it.

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-money.cnn.com

WHERE DO YOU STAND?Revolving Debts (credit cards, store charge cards, car loans)Card/Loan Amount owed Int. Rate Est. annual interest paymentEx. Visa $4,379.27 17.65% $4,379.27 x 0.1765 = $772.94________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________

Total ________ _______________________

Mortgages, home equity loans/ lines, student loans Card/Loan Amount owed Int. Rate Est. annual interest payment________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________ ________ ________ ______ _______________________

Total ________ _______________________

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-The Motley Fool

Do you have too much revolving debt?

Total revolving credit/auto loan debt: ______________

Total after-tax annual income: ______________

Debt-to-income ratio:______________

TOTAL MONEY MAKEOVER1. Save $1,000

2. The “debt snowball”

3. Finish the emergency fund

4. Maximize retirement investing

5. College funding

6. Pay off the home mortgage

7. Build wealth

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-Dave Ramsey’s Total Money Makeover

ELIMINATING CREDIT CARD DEBT1. Plan the pay-off order.

2. Reduce your interest rates with a phone call.

3. Create a budget.

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TIPS TO GET SPENDING UNDER CONTROL• Don’t spend what you don’t have.

• Build up a cash cushion.

• Use cash more often.

• Put everything in writing.

• Cut spending and apply savings to debt.

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-Lynette Khalfani, Zero Debt

BONUS TIP:To make sure you haven’t

forgotten any creditors, order your credit reports.

YOUR QUESTIONS?

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