1 / 16

Chapter 8 Preserving Your Credit

Chapter 8 Preserving Your Credit. What Are Shared Responsibilities?. Shared responsibility is when two or more people agree to bear a portion of an obligation. A roommate is a person with whom you share living space and responsibilities. 8-1 Identifying Financial Issues. Group Budget.

lazar
Download Presentation

Chapter 8 Preserving Your Credit

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. Chapter 8 Preserving Your Credit

  2. What Are Shared Responsibilities? • Shared responsibility is when two or more people agree to bear a portion of an obligation. • A roommate is a person with whom you share living space and responsibilities. 8-1 Identifying Financial Issues Slide 2

  3. Group Budget Group budgeting allows allocation of expenses so that each person pays his or her share. 8-1 Identifying Financial Issues Slide 3

  4. Tenant Rights and Responsibilities • Rights • To possess and enjoy the property • To come and go and have guests • To use common areas, such as pools • Responsibilities • To use the property only as intended • To care for the property and report repairs • To obey the rules 8-1 Identifying Financial Issues Slide 4

  5. Landlord Rights and Responsibilities • Rights • To receive rent in a timely manner • To inspect the property • Responsibilities • To provide a safe, sanitary, and habitable living site • To provide a convenient way to pay rent • To keep security deposits in a separate account and refund unused portions 8-1 Identifying Financial Issues Slide 5

  6. Focus On . . . • Reading a Lease Agreement • A lease is a property rental agreement that lasts a year or longer. • A month-to-month agreement means you can leave with a 30-day notice. • A lease gives you the security of knowing property is committed for a fixed time period. • Read a lease agreement carefully before signing to avoid traps. 8-1 Identifying Financial Issues Slide 6

  7. Buying a Car A car loan is usually an installment loan with monthly payments. • Make a down payment (cash deposit) toward purchase price. • Can trade-in existing car as down payment. • Consider a preapproved loan, dealer financing, or a lease. 8-2 Long-Term Debt Repayment Slide 7

  8. Buying a House A mortgage is a long-term debt agreement used to purchase real estate. • A down payment of 10 to 20 percent of the purchase price is often required. • Property is used as collateral for the loan. • A conventional loan lasts up to 30 years. • An FHA loan is a government loan. • Closing costs are expenses paid to get a loan, such as appraisal fees and credit report fees. 8-2 Long-Term Debt Repayment Slide 8

  9. What Is a Debt Repayment Plan? A debt repayment plan is a strategy for paying off debt to reduce interest paid. 8-2 Long-Term Debt Repayment Slide 9

  10. Debt Repayment Plans • Student loans are deferred-payment loans; payment is postponed until your education is completed. • A shorter mortgage (15 yr. vs. 30 yr.) means less interest but higher monthly payments. • A rent-to-own agreement applies the monthly rent toward the purchase price of the property. 8-2 Long-Term Debt Repayment Slide 10

  11. Building Communications Skills • Formal Speaking • Begin with a clear statement of your goals. • Use an outline to develop the content. • Consider the audience. • Use slides to help illustrate points and add interest. • Practice the speech within the time limit. • Make eye contact and speak with confidence. 8-2 Long-Term Debt Repayment Slide 11

  12. How Can You Manage Credit Use? • Establish credit so it will be available in the future. • Pay bills on time to build a solid credit history. • Pay entire amount to avoid paying interest. • Establish a cash fund and have unused credit. 8-3 Credit Management Slide 12

  13. Study Credit Offers Compare disclosure terms. • Interest rates • Grace period • Annual fee • Minimum finance charge • Transaction fees • Cash advance fees • Late fees • Over-the-limit fees 8-3 Credit Management Slide 13

  14. Avoid Unnecessary Credit Costs • Keep the number of credit cards and accounts to a minimum. • Comparison shop for credit cards. • Consider special deals and financing. • Use credit to get sale prices. • Time your credit purchases. • Get cash rebates and rewards. • Pay bills on time or early. 8-3 Credit Management Slide 14

  15. Avoid Unethical Loan Practices • A loan shark offers illegal unsecured loans at high interest rates. • An advance-fee loan includes a large upfront fee. • Equity stripping involves giving a loan to a homeowner who cannot afford it, then taking possession of the home. 8-3 Credit Management Slide 15

  16. Success Skills • Stress Management • Identify the causes of negative stress. • Take steps to avoid or change these situations. • Seek counseling for serious stressful events. • Find activities to help you relax. • Spend time with family and friends. • Get rest, eat healthfully, and stay active. 8-3 Credit Management Slide 16

More Related