Love Your Money: Getting

out of Debt

Jayne McBurney, MSFamily & Consumer Sciences Agent

http://johnston.ces.ncsu.edu/2736 NC Highway 210Smithfield919-989-5380

Statistics 2008: The Averages

• more than $8,000 in credit card debt• 2.7 bank credit cards• 3.8 retail credit cards• 1.1 debit cards• Spends $1.22 for each dollar they earn • 2010.......

Double Trouble

Debt in daily terms(for payoff in 3 years)

The Steps

STOP new purchases

ASSESS-how I got into thisTRACK - write EVERYTHING downSMART goalsFIND places to saveFIX pay down credit or saveTALK to ALL members of household

TRACK your spending

• Write down EVERYTHING you spend

• Use a calendar with due dates– A wake up call

Find $ • Cable….movie packages

– Rent movies, save $25-$50/mo

• Internet– If you have a smart phone, you may not need

Internet/wireless service at home, save $45/mo

Nails/ Haircut…can you wait a week?– Have hair and nails done every ten days, save $50/mo

• Daily lunch, at a modest $5 = $100 a month• Pack Lunch 3 days a week, save $60/mo

• Vending machine: 1/day @ 1.25, $25/month– Bring snacks from home in a cooler, save $50/mo

• Memberships, Subscriptions, Services• Barter, Trade, Sell

Fix Debt YourselfPay down credit!

GOAL:Protect Credit Score

Power Pay way....

• Three repayment options:

– Highest interest rate first (in sequence)

– Lowest balance first

– Shortest payoff term first

• Can add one-time or periodic additional payments (e.g., bonus, tax refund)

• Savings will vary according to length of debt, number of creditors, APRs, etc.

Talk• Communicate with partner about

spending issues and financial goals

• How will we manage?

Housing

25% - 33%

of gross pay

Vehicleless than 15% of gross including insurance, gas and maintenance

Monthly debtsShould be less

than 15-20% of net

*about 35% left

What is my Credit Score?Score range: 300-850

• www.annualcreditreport.com

• www.myFICO.comUse the Credit Education tab

Fun & Helpful websites• https://powerpay.org/

• www.bankrate.com

• www.Mint.com

• www.feedthepig.org