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Reduce Debt And SAVE!

Reduce Debt And SAVE!. Airman & Family Readiness Center Building 794 926-1256 Mr. Anthony Pope. Overview. Behaviors Impact on your Credit Score The Fix Spending Plan and Debt Reduction Plan Your Future Goals. Do you WANT to reduce debt and SAVE?. The Key Is to Modify Habits!.

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Reduce Debt And SAVE!

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  1. Reduce Debt And SAVE! Airman & Family Readiness Center Building 794 926-1256 Mr. Anthony Pope

  2. Overview • Behaviors • Impact on your Credit Score • The Fix • Spending Plan and Debt Reduction Plan • Your Future Goals

  3. Do you WANT to reduce debt and SAVE? The Key Is to Modify Habits!

  4. Needs vs. Wants Needs: Food, clothing, shelter, transportation and insurance Wants: Everything else

  5. Stop Your Impulsive Buying Impulse buying happens when you buy something that you really do not need There is no thought attached to the purchase Beware of the checkout stands. While you are waiting your mind will checkout too

  6. Limit Temptation We have our weak points when it comes to spending money We like to spend money on what brings us a sense of immediate satisfaction Have you every thought, “why did I buy this item?” We then experience a sense of remorse

  7. Grocery Store • Plan meals for all week • Pack a lunch • Make your own Joe • Make a list and stick to it (mostly) • Use Coupons!! • Do NOT go to the store hungry! Munch before you go!

  8. Keep Your Credit Cards at Home Keep your cards at home (locked up) Use cash (What a novel idea!) Track what you spend

  9. Discover Alternatives to Spending Stay at home (pull out those old games!) Search newspapers or online for free community events Do something that is free Go to the Library and check out a book or a movie—they’re free Exercise: go for a walk, ride a bike, Rec Center, State Parks

  10. Hold Yourself Accountable Whose responsible for all this spending? Me, myself and I. Spouse, partner, children, etc. Who ever makes the financial decisions in your household

  11. YOU ARE NOT ALONE

  12. Are My Habits Impacting My Credit Score?

  13. Calculating Your Score

  14. Credit Score Impact Car Payment $16,000 Vehicle Loan Credit (FICO) Score

  15. How To Improve Your Credit Score • Review your credit report • Dispute errors in writing, certified, return receipt • Add missing positive information • Do not add new accounts in order to lower balances on old accounts • Do not close long-term accounts • 100 word statement

  16. Protecting Your Credit Cautions About Scams • Ads Promising Debt Relief • Advance-Fee Loan Scams • Caution against Debt Consolidation • Credit Repair Scams • Credit Repair Organizations Act • Computers / Phones / Phishing

  17. Avoid Being a Victim of Identity Theft The top 10 things you can do now to safeguard your identity are: • Protect your social security number • Don't carry too many credit cards • Don't get scammed • Shred rather than trash • Check your bills and bank statements • Stop pre-approved credit offers— Call toll-free 888-5OPTOUT (888-567-8688) • Question inappropriate requests for information • Monitor your credit reports • Shield your computer from viruses and spies • Use caution when shopping online

  18. Now that you know what to watch for (habits) … What’s next???

  19. The FIX??? You guessed it... YOU NEED A

  20. Spending Categories All the things you spend money on can be divided up into categories For example: • Mortgage Payment/ Rent • Car Payment • Groceries • Light Bill • Internet • Cable Bill • Heating Bill • Phone • Car Insurance • Entertainment • Savings

  21. Congratulations! You’ve just given every dollar a job!

  22. As the month goes along, you will keep track of three things:

  23. Notice the focus here is oncategory balances... ...NOT account balances

  24. What if something unexpected happens and you blow the budget… what now? Correct it next month… ...before you begin the next month’s budget.

  25. Let’s take a look at how that works • In November you overspent by $50 • Now it’s December 1st. You have $3000 to budget. • First step, subtract the $50. • THEN go through your budget, giving every dollar a job.

  26. Debt Reduction Plan • How much CAN you apply toward Debt? • Just 300? • Highest Interest Rate First? • Use TOTAL amount EVERY until all debts are paid. • Powerpay.org

  27. Plan for the Future • Live BELOW your means • Knock down that credit card debt • Stick to your Spending Plan • Develop a plan for retirement savings TSP IRA’s Mutual Funds 401 K’s

  28. Ask for Help Need help getting started? Seek assistance with: A&FRC Staff Your Bank or Credit Union Consumer Credit Counseling www.resourcesone.com Go to the Library and check out books

  29. Resources • Annual FREE Credit Report(s) annualcreditreport.com • Consumer Credit Counseling Services (CCCS) • Council of Better Business Bureaus, Inc. (CBBB) bbb.org/military.html • Federal Trade Commission ftc.gov • National Crime Prevention Council • Springboard – Non-Profit Consumer Credit Management ncfe.org/

  30. Questions? Airman & Family Readiness Center 926-1256

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