Working With Credit

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Working With Credit. PBL Presentation, 10/20/2004 By Rick Christoph. What is Credit?. Credit is an advance

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Working With Credit PBL Presentation, 10/20/2004 By Rick Christoph

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What is Credit? Credit is an advance –You acquire $$! Really, you are purchasing cash! Credit is not: Prestige Cool Special

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Why do we have so much credit? We need it now! We need EVERYTHING now No $$? No sweat – charge it. We should get that new auto, TV, Clothes! What we are doing is to contract our future for now

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How much does it cost? Normal family has $9,000 paying off debtors! Many have 0 – what do the others have?? Take a gander at all the obligation combination firms Why are they around? To profit from the suckers! Investigate this credit application Don't be a sucker!

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How long does it take to result? Take that $9,000– what might the base installment be? Generally, 2.08% every month is the base Assume a 21.9% loan fee .028 * 9,000 = 252 OK, to what extent to result WITH NO OTHER PURCHASES? http://cgi.money.cnn.com/apparatuses/debtplanner/debtplanner.jsp

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In Trouble? Get another card! The most idiotic conceivable thought How much does that cost you? http://www.credit-card-applications-center.com/1/awful credit-credit-cards.php How about a payday progress? http://www.loan-till-payday.com/faqs.asp HOW MUCH IS THE FINANCE CHARGE? The Annual Percentage Rate (APR) on a run of the mill 14 day credit is 782.14%, which is $30.00 per each $100.00 acquired. You can likewise renegotiate your advance.

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How to utilize credit Know great versus terrible obligation GOOD – things last longer than obligation: utilized for venture Critical things you should have BAD – obligation endures longer than thing Buying a pizza (stuff that is gone before the bills arrive)

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INVEST in YOU Pay off the obligation! http://money.cnn.com/pf/101/lessons/9/Build a pad Cash to cover here and now issues Invest in yourself http://cgi.money.cnn.com/apparatuses/savingscalc/savingscalc.html

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WOW! It will take 25 years to pay off the 9,000 and you get the chance to pay an additional 14,000 in intrigue. YOU PAY – $23,000 If you contribute the $252 a month for a long time – YOU GET $225,724.36 Let's you know why firms like the charge card business!

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More WOW About Tax Deferred Investments - Your 252 a month GETS YOU $282,522.73 Invest in 401K, 401a, 403b How do these work? Prompt assessment funds and development!

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How about autos? Autos are fun – and costly Average installment time > 64 months! What does "topsy turvy signify" How would we get topsy turvy Trade too quick No up front installment Fast devaluation Should you give it a chance to be repossessed? http://money.cnn.com/2004/09/23/pf/obligation/chatzky_intronew/index.htm

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What is a "FICO assessment" Score created by Fair Isaac & Co. Called a FICO score Used to decide the amount you pay for charge cards, auto credits, contracts How is your score? http://www.bankrate.com/brm/fico/calc.asp

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What is a mother to do? Live BELOW your methods Use obligation for ventures that acknowledge Be a proprietor – not a borrower Learn from other's missteps START early

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Great Websites http://www.bankrate.com/dls/rate/calc_home.asp http://www.stretcher.com/index.cfm http://www.schwab.com/http://flagship.vanguard.com/VGApp/hnw/PersonalHome http://money.cnn.com/

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