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Simple ideas to help stop the debt cycle and interesting facts about the American family and debt.
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Presented by Ericka YoungSeptember 22, 2010
SRP: Insider Tricks of the Trade
Meet Ericka YoungCertified Financial Counselor
I am a Certified Financial Counselor and President of Tailor-Made Budgets. I help others gain control over their money through personal financial coaching. How do I do that? By. . . teaching classes coaching and learning from my clients all
around the country conducting speaking engagements
Meet Ericka YoungCertified Financial Counselor
My husband and I dug our way out of nearly $100,000 in debt in five years!
We now enjoy being debt-free!
So Can You!
Snapshots of American Finances
According to the Wall Street Journal nearly 70% of all consumers live from
paycheck to paycheck.
Snapshots of American Finances
In 2009 there were 1,389,402 bankruptcies
filed in the U.S. (increased each year since 2006).
Snapshots of American Finances
In 2009 there were 163,210 foreclosures filed in Arizona (323% increase over 2007).
Snapshots of American Finances
36% of Americans say that personal finance is the #1
personal stress factor at work according to USA Today.
Snapshots of American Finances
Fact 1: 70% of Americans
worry about their moneyFact 2:
59% have credit card bills
Snapshots of American Finances
Fact 3:
78% have mortgage
paymentsFact 4: 56% make car
payments
Snapshots of American Finances
Fact 5:
Typical household has over $38K in consumer debt.
Fact 6:20% of workers wouldn’t be
able to make a mortgage, utility or credit card payment if they missed one paycheck
What do we do?
Save some money
Quit borrowing money!
BudgetUse CASH!Sell something.
Get a part-time job, do overtime, or start your own
business.
NEW CREDIT CARD LAWWhat you need to know…
Consistent payments for 6
months may result in reduced
interest rates.Credit card ban for those under
21.Gift card inactivity
fees (w/in 12 months) banned.Universal default
& double cycle billing banned.
45 days notice of rate increase.
NEW CREDIT CARD LAWWhat you need to know…
You may need to ask for your interest rate
reduction if you've paid consistently
for 6 months.You can stop any future interest
rate increases by canceling or closing the account.
Transactions that may put you
above the credit limit must have
the your consent (or opt-in) prior to
processing21 days to pay credit card bill.
What’s happening now?
Interest rates have increased and there
still is no cap.
Credit limits have decreased affecting your credit score.
The new credit card law does not apply to corporate
cards.
Annual fees will be the norm.
What’s happening now?
75% of Forbes 400 wealthiest people
surveyed said, “The #1 key to building
wealth is to be debt free.”
The Debt Snowball
DEBTTOTAL
PAYOFFMINIMUM PAYMENT
NEW PAYMENT
PAYMENTS REMAINING
CUMULATIVE PAYMENTS
Medical Bill $150 $15 $0 0 Garage Sale
Dillard’s $250 $10 $25 10 10
Visa $500 $75 $100 paid 10
Mastercard $1,500 $90 $190 3 13
Car $4,000 $210 $400 3 16
Student Loan $4,400 $65 $465 7 23
Total: $10,800 $465
Count the Daily Cost!
Expense CostPer Day
CostPer month
If invested at 12% from age 26-86
Gourmet Coffee $5 $20 $2,582,753
Lunch5 days/wk $8 $160 $20,663,319
Budget Benefits
1. You'll get clear on
your priorities.
Budget Benefits
2. You’ll get out of
debt.
Budget Benefits
3. You’ll save money.
Budget Benefits
4. You may lose
weight.
Budget Benefits
5. You'll be less
stressed.
Budget Benefits
6. You'll find money.
Budget Benefits
7. You'll be less likely
to splurge.
Budget Benefits
8. You'll sleep better.
Budget Benefits
9. Extra money will
have a purpose.
Budget Benefits
10. You’ll be an example to others.
Questions and Contact Information
This concludes our seminar for today.I hope I have (re-)instilled a fearlessness and leadership in you that was there all along. I’ll be happy to answer any questions you might have.
I can also be contacted at any time at
(480) 200-2516
www.tailormadebudgets.com
