Community MeetingCommunity MeetingAugust 1, 2010August 1, 2010

Topic: CREDIT trap will destroy Topic: CREDIT trap will destroy your EQUITYyour EQUITY

What is EQUITY?What is EQUITY?

• Property (personal and real) MINUS Property (personal and real) MINUS financial obligations due (debt) to the financial obligations due (debt) to the said property, if any.said property, if any.

• EquationEquationProperty – Debt = EQUITYProperty – Debt = EQUITY

Illustration examples later on.Illustration examples later on.

Asset Asset - - DebtDebt = = EquityEquity• Car loanCar loan$25,000 $25,000 $0$25,000 $25,000 $0($2,500) 0 ($2,500)($2,500) 0 ($2,500)

• Home LoanHome Loan$350,000 $350,000 $0$350,000 $350,000 $0Real Estate bubble burst at current market Real Estate bubble burst at current market

valuevalue““say” $250,000 ($100,000)say” $250,000 ($100,000)

Building equity is important to Building equity is important to our financial healthour financial health

• If you earned $1 you should spend If you earned $1 you should spend less than $1. This result into less than $1. This result into POSITIVE equity.POSITIVE equity.

• If you earned $1 and spend $1.10 If you earned $1 and spend $1.10 you incur deficit. This result into you incur deficit. This result into NEGATIVE equity.NEGATIVE equity.

What creates NEGATIVE What creates NEGATIVE equityequity• Too much debt. Lets get real & use cash!Too much debt. Lets get real & use cash!• Easy access to credits like credit cardsEasy access to credits like credit cards• Anticipation of income (spending future Anticipation of income (spending future

income today)income today)• Impulse buying habitsImpulse buying habits• Plastic money vs. cashPlastic money vs. cash

Bottom line: You can’t solve credit (debt) by Bottom line: You can’t solve credit (debt) by incurring more debt! Who will think GM will incurring more debt! Who will think GM will go bankrupt?go bankrupt?

Electronic Fund Transfer (EFT) Electronic Fund Transfer (EFT) and Identity Theftand Identity Theft

• Call your bank and document your claim.Call your bank and document your claim.• Your account must be credited in 24-hours Your account must be credited in 24-hours

without any further question.without any further question.• The institution must conduct investigation The institution must conduct investigation

ASAP and inform you of the results.ASAP and inform you of the results.

• Place a fraud alert on your credit report Place a fraud alert on your credit report ASAP and review your credit report.ASAP and review your credit report.

TransUnion:TransUnion: 1-800-680-7289; 1-800-680-7289; www.transunion.comwww.transunion.com; Fraud Victim ; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790 Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

Equifax:Equifax: 1-800-525-6285; 1-800-525-6285; www.equifax.comwww.equifax.com; P.O. Box 740241, ; P.O. Box 740241, Atlanta, GA 30374-0241Atlanta, GA 30374-0241

Experian:Experian: 1-888-EXPERIAN (397-3742); 1-888-EXPERIAN (397-3742); www.experian.comwww.experian.com;; P.O. Box P.O. Box 9532, Allen, TX 750139532, Allen, TX 75013

Question & AnswerQuestion & Answer

You may also email your You may also email your questions to: Noel atquestions to: Noel atnsoria60@gmail.comnsoria60@gmail.com

Salamat po.Salamat po.