love your money : getting out of debt jayne mcburney, ms family & consumer sciences agent 2736...
TRANSCRIPT
![Page 1: Love Your Money : Getting out of Debt Jayne McBurney, MS Family & Consumer Sciences Agent 2736 NC Highway 210 Smithfield](https://reader036.vdocument.in/reader036/viewer/2022062409/56649ef35503460f94c054e5/html5/thumbnails/1.jpg)
Love Your Money: Getting
out of Debt
Jayne McBurney, MSFamily & Consumer Sciences Agent
http://johnston.ces.ncsu.edu/2736 NC Highway 210Smithfield919-989-5380
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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 • 2010.......
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Double Trouble
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Debt in daily terms(for payoff in 3 years)
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The Steps
STOP new purchases
ASSESS-how I got into thisTRACK - write EVERYTHING downSMART goalsFIND places to saveFIX pay down credit or saveTALK to ALL members of household
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TRACK your spending
• Write down EVERYTHING you spend
• Use a calendar with due dates– A wake up call
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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/day @ 1.25, $25/month– Bring snacks from home in a cooler, save $50/mo
• Memberships, Subscriptions, Services• Barter, Trade, Sell
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Fix Debt YourselfPay down credit!
GOAL:Protect Credit Score
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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.
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Talk• Communicate with partner about
spending issues and financial goals
• How will we manage?
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Housing
25% - 33%
of gross pay
Vehicleless than 15% of gross including insurance, gas and maintenance
Monthly debtsShould be less
than 15-20% of net
*about 35% left
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What is my Credit Score?Score range: 300-850
• www.annualcreditreport.com
• www.myFICO.comUse the Credit Education tab
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Fun & Helpful websites• https://powerpay.org/
• www.bankrate.com
• www.Mint.com
• www.feedthepig.org