Working With Credit

2535 days ago, 1078 views
PowerPoint PPT Presentation
Working With Credit. PBL Presentation, 10/20/2004 By Rick Christoph. What is Credit?. Credit is an advance

Presentation Transcript

Slide 1

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

Slide 2

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

Slide 3

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

Slide 4

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!

Slide 5

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?

Slide 6

In Trouble? Get another card! The most idiotic conceivable thought How much does that cost you? credit-credit-cards.php How about a payday progress? 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.

Slide 7

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)

Slide 8

INVEST in YOU Pay off the obligation! a pad Cash to cover here and now issues Invest in yourself

Slide 9

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!

Slide 10

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!

Slide 11

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?

Slide 12

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?

Slide 13

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

Slide 14

Great Websites