Managing Credit & DebtSave more for the future

Getting and Staying Out of Debt

The more you know about credit and how to manage it, the easier it is to stay out of debt.

•TransUnion

•Equifax

•Experian

Knowing the Score

www.annualcreditreport.com

Pay at least the minimum due on time every month

The fewer accounts, the better

Don’t spend income now that you hope to make later

Avoid transferring balances unless you’re getting a better interest rate

Notify creditors when you move

Eliminate all but two credit cards

Good Credit is a Credit to You

• Delinquent credit card account• Maxed-out credit limits• Cash advances to pay bills• Pay minimum amount on credit cards

Debt Red Flags

If you owe $1,000 at 16.35% interest and pay $25 per month, your total bill will amount to $1,425. That’s your original debt, plus interest, over a period of nearly 5 years (57 months).

Live within Your Means

$1,000

Total = $1,425

+ $425

OriginalDebt

16.35%Interest

Source: Bankrate.com

• Pay off the card with the highest interest rate first

• Know the APR of each card• Shop around for the best rate• Consolidate debt on lowest-rate

card

Fully Understand Your Credit Cards

Paying Off Credit Cards

Advantage to Paying Off Credit Card Debt

Credit Card

Credit Card

Balance

Interest Rate

Minimum Monthly

Payments

Months to Payoff

Monthly Payment

Months to Payoff

Card 1 $3,000 9 $50 79 $100 34

Card 2 4,000 12 75 76 150 32

Card 3 5,000 9 100 63 200 28

TOTAL $12,000

$225 $450

TOTAL PAID

$18,950 $13,800

Source: Bankrate.com

• Keep a cash reserve for unexpected events and purchases

• Have enough for 3-6 months of living expenses

• Keep it liquid

Build a Cash Reserve

•Understand your spending patterns

•Change and improve to meet goals

•Decide where to cut – prioritize

•Stick to your budget

Create a Realistic Budget

• Live within your means

• Material goods can depreciate; investments have the potential to appreciate

• Save your next raise or bonus

• Refinance your mortgage

Spend Less, Save More

• Maintain motor vehicles and drive them as long as possible

• Use coupons, take advantage of sales and discounts and buy in bulk

• Consider local vacations• Avoid impulse buying and shopping

from catalogs• Make your own coffee and meals• Cut out premium cable channels and

extra telephone features

Ways to Save

•Experienced and knowledgeable

•One-on-one consultation

•Periodic reviews

•Stay on track

• Include your tax and legal advisors

Professional Guidance

MetLife Resources is a division of Metropolitan Life Insurance Company that specializes in providing plan products and other financial products and services to healthcare, educational, governmental and other nonprofit employers and their employees.

• $34 billion in retirement assets under administration1 • 23,000 employer groups, helping millions of employees

plan and save for retirement2

1LIMRA Not-for-Profit Report; First Quarter, 2011. Assets under administration with Metropolitan Life Insurance Company through the MetLife Resources division.2 As of June, 2011

MetLife Resources

•MetLife has been providing guarantees for the “if” in life for over 140 years1

•Number one life insurance company in the USA2 (Fortune, 2011, FORTUNE 500® Annual Ranking of America’s Largest Corporations)

1Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to the insurer’s claims-paying ability and financial strength.2Based on life insurance in force of Metropolitan Life Insurance Company (LIMRA, June, 2011)

Strength, Stability, Integrity & Experience

MetLife and its representatives do not provide specific tax or legal advice.

Please consult your tax advisor or attorney for such guidance.

MetLife Resources is a division of Metropolitan Life Insurance Company (MLIC), 200 Park Avenue, New York, NY 10166. Securities, including variable products offered through MetLife Securities, Inc., (MSI) (member FINRA/SIPC), 1095 Avenue of the

Americas, New York, NY 10036. MLIC and MSI are MetLife Companies.

On the Plus Side

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