1 / 8

Managing Credit and Debt

Managing Credit and Debt. Originally Presented by Michele Jersak Counselor and GPS LifePlan Program Adapted from presentation by Kim Woodbury, Underrepresented Student Program - Century College. Basic Types of Credit. Service credit Loans Installment credit Credit cards.

miguelk
Download Presentation

Managing Credit and Debt

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Managing Credit and Debt Originally Presented by Michele Jersak Counselor and GPS LifePlan Program Adapted from presentation by Kim Woodbury, Underrepresented Student Program - Century College

  2. Basic Types of Credit Service credit Loans Installment credit Credit cards

  3. Credit Card Advantages Emergencies/Back-up Flexible Protection against theft Leverage Way of the world Convenient Helps with Money Management Helps build credit

  4. Credit Card Disadvantages Costs involved May encourage you to overspend Rewards impulse buying Ties up your future income

  5. Understanding Your Credit Score • FICO = Fair Isaac Co. • 300 (low) • 800 (high) • Determines: • Interest you pay • Amount you can borrow • Spending limits • Cost of insurance Get your credit report at:http://www.annualcreditreport.com

  6. Understanding Your Credit Report • Personal Information • Public Records • Credit Account Information • Inquiries

  7. Assessing Your Debt Do I pay my bills late? Do I only make minimum payments on my credit card(s)? Am I close to maxing out my credit card limit? Do I worry about money all the time? Have I ever needed to borrow money to pay my bills? Are creditors calling me? http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx

  8. Paying Off Your Debt Order your debts from highest interest rate to lowest Pay the minimum to all debts every month (except one on top) Send all extra available money to highest interest rate card Repeat ever month From: http://www.consumerismcommentary.com/2008/07/07/the-correct-way-to-pay-off-personal-debt-the-debt-avalanche/

More Related