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Assistive Technology Webinar

Assistive Technology Webinar. Brought to you by Michigan’s Assistive Technology Program at MDRC. Use the chat function on the right hand side. Questions and comments are encouraged and expected! The session is being recorded. We will start recording now. About the Webinar. 2.

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Assistive Technology Webinar

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  1. Assistive Technology Webinar Brought to you by Michigan’s Assistive Technology Program at MDRC.

  2. Use the chat function on the right hand side. Questions and comments are encouraged and expected! The session is being recorded. We will start recording now. About the Webinar 2

  3. Rent-to-Own, Payday Lenders, Credit Repair   How to Evaluate the Real Cost and Avoid the Pitfalls November 10, 2011 Glenn Ashley, UCP Michigan Kenneth Ashley, Free Agent

  4. Never have enough money? Don’t throw it away! 4

  5. Payday Loans and Cash Advance • Located in low income neighborhoods. Why?? • Easy for people to find the “store”.

  6. Interest Rates • Borrow $100, fee is $15 for 2 weeks • Interest rate? 15% • Annual Interest Rate • 15 X 26 = 391% APR Source: Michigan Attorney General www.michigan.gov/ag

  7. Even Worse Idea • Roll the $100 loan forward every 2 weeks, until you reach the maximum allowed by law. • How much will you owe? • $676

  8. Payday Loans and Cash Advance? Rip Off!!!!! (Not a wise use of your money!)

  9. Rent to Own • How many times more does it cost to buy from Rent to Own? • Pay $1,000 for a $300 computer?

  10. Cost for a $300 Computer • Just $15 per week for 18 months • How much did his $300 computer cost him? • $15 X 18 = $270?

  11. The Real Cost • Pay for 18 months, not 18 weeks! • 18 months is 78 weeks • $1,170 for the $300 computer

  12. What should my friend do? • Please use the public chat area to type your answers and comments.

  13. How about the MATLF? • Michigan Assistive Technology Loan Fund UCP Michigan 4970 Northwind Drive, Suite 102 East Lansing, MI 48823 Phone 517-203-1200 Ask for Michele

  14. $300 Computer Loan From MATLF • At $10 per week, 7% interest, • Pay it off in 7 months • Costs you $309 • Congratulations, you have saved $861! (Note – not all computer purchases are eligible for loans from MATLF.)

  15. Is Rent to Own is better than Payday Loans?

  16. Ask Experts • They have research to back it up • SuzeOrman • Dave Ramsey • Larry Burkett

  17. Car Sales

  18. Bogus Government Notices

  19. Pitfalls of Credit Repair • Difference between safe and scary? • Advertisers on TV - Run Away! • An expert who is selling you a product? On commission?

  20. For Credit Advice or Counseling • Find a local organization through the National Foundation for Credit Counseling (NFCC) • Phone: 1-800-388-2227 • Website: www.nfcc.org

  21. Debt Management Bad Idea: • Paying someone else to do what you can do yourself. Worse idea: • Paying to remove accurate info from your credit report. (It’s a scam.) Even worse idea: • Lying to remove accurate informationIt’s a federal crime.

  22. 13 Things a Debt Collector Won’t Tell YouBy Michelle Crouch #5 • We have an astounding power to wipe out thousands of dollars of your debt. • Most accounts have a one-time settlement rate that’s preapproved (typically 15 to 35 percent on credit card debt). -from Reader's Digest magazine October 2011 , p 44.ReadersDigest.com

  23. 13 Things a Debt Collector Won’t Tell YouBy MichelleS Crouch. #6. • A lot of agencies buy debt for pennies on the dollar, so always start your settlement offer low, maybe 25 cents on the dollar. • Say something like “I have $200 that I can apply toward this debt. Will you accept that as payment in full?” • If I say no, ask what I’m willing to accept as a settlement and negotiate from there. -from Reader's Digest magazine October 2011, p 44. ReadersDigest.com

  24. Debt CONsolidation • Debt is the symptom • Over-spending and under-saving is the problem • Lower payment for longer term = More money for the Debt Con. Company

  25. Crooks • AmeriDebt – founded by Andrus Pukke • Hidden fees and deceptive practices took $170 million out of customers’ pockets. (FTC) • It is now out of business. (similar ones pop up and disappear) • Place to check: Attorney General’s Office

  26. 13 Things a Debt Collector Won’t Tell YouBy Michelle Crouch #13 • If I threaten to have you arrested, use profanity, or call before 8 a.m. or after 9 p.m. • Those are violations of the Fair Debt Collection Practices Act. • Report me to your state attorney general's office (naag.org) and the Federal Trade Commission (ftc.gov). -from Reader's Digest magazine October 2011, p 45. ReadersDigest.com

  27. If You Must Get Help with Debt Management • Ramsey says that “Consumer Credit” is the best. • Your credit is still trash.

  28. Big Danger • To benefit from Debt Consolidation • Must change your spending habits • Who can teach you to do that? • SuzeOrman • Dave Ramsey • Larry Burkett books

  29. Credit Card Pitfalls • Late payments • Maxing out credit cards • The Big One: • Buying things you don’t need or can’t afford.

  30. Credit Card Offers • How to turn them off • Go to: OptOutPrescreen.com

  31. Oops Credit

  32. Credit Card Insurance • Costs you how much? • What do you get for it? Yes, I would like to protect my account by enrolling in Payment Aid. By providing my initials, I have received the Payment Aid Program Summary on the enclosed insert and I want to purchase this optional program. Bill my account $0.87 per $100 of my New Balance until I cancel. If you cancel this within the first 30 days, you will not be billed.

  33. Credit Card Insurance Costs: • If you owe $1000, you pay $8.70 for the insurance. • Your minimum payment is $10.00. • You have almost doubledyour payment for no good reason.

  34. The Consumer Credit Protection Act • Ways companies get around it • Promoting business credit cards for consumers

  35. Popular Way to Throw Away Money - 1 • Insurance from bank to cover a loan • Same as Credit Card insurance • Buy term life insurance instead

  36. Popular Way to Throw Away Money - 2 • What is the Michigan Lottery? • A tax on people who can’t do math.

  37. Popular Way to Throw Away Money - 3 • Infomercials: “Secrets to Get Rich” • Guess who gets rich? • Better Idea: Get Rich Slowly • www.GetRichSlowly.org

  38. Popular Way to Throw Away Money - 4 • Buy a brand new car • New $28,000 car will lose about $17,000 of value in the first 4 years. • A $100 bill once a week for 4 years.

  39. Best Ways to Avoid Scams • Do business with a local bank or credit union • Check people out

  40. Avoid Ads • Opt out of Credit Card offers • Never open junk mail or spam

  41. Avoid Email Ads: From: Credit Cards <StartupBusinesses@T.info>Sent: Thu, November 3, 2011 1:12:39 PMSubject: Why are you waiting? Make life easier with a credit card

  42. Most Important Steps • Spend less. Less than your income!!! • Pay your bills. On time! • Pay off your debt. • Clean up your own credit bureau records.

  43. Websites • Michigan Attorney General Scam Alerts:http://www.michigan.gov/ag • http://www.GetRichSlowly.org • http://www.MissingManual.com/feedback - choose “Your Money” • http://www.DaveRamsey.com • http://www.SuzeOrman.com • http://www.threerules.org

  44. Final Thoughts “The art is not in making money, but in keeping it.”- Proverb “It's not your salary that makes you rich, it's your spending habits.”- Charles A. Jaffe

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