DEBT

REPAYMENT

Sarah Scruggs, Community Engagement Specialist

Migdalia Gomez, Community Engagement Manager

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TODAY’S

WEBINAR Reducing background noise

Using the “Questions” feature

Format

Presentation and Resources

HUECU.ORG/BWH

HUECU.ORG/COVID-19-HELP

WHAT DOES TODAY

LOOK LIKE?

EMERGENCY

FUNDCalculate Expenses (Needs)

1 month

3 months

6 months

Start small and build

$500

$1,000

LIST YOUR DEBTS

And monthly payments!

Visit www.HUECU.org/HUB for this and other handouts.

Amount APR TermsMonthly

Payment

$10,000 7.5% 120 months $119

$5,000 18.0% 60 months $127

CALCULATE THE

COST OF YOUR DEBTTotal Interest

Paid

$4,244

$2,618

Total

Amount

Monthly

Payment

Total

Interest

$15,000 $246 $6,862

ROAD(S) TO

REPAYMENT

• Personal Loans

• Refinancing Loans

• Mortgage Refinancing

• Auto Refinancing

• Student Loan Refinancing

• Debt Consolidation Loans

• Credit Card Balance Transfers

LOOK FOR

LOWER

RATES

Extending the terms

• may lower payment, butincrease total loan payments.

Benefits and conditions

• of the original debt, may not

apply once you refinance.

ANNUALCREDITREPORT.COMReceive a free weekly copy of report from each of 3 bureaus until

April 2021.

REPAYMENT STRATEGIES

SNOWBALL

Focus on smallest debt first.

Build momentum

AVALANCHE

Focus on highest interest first.

Start high then level off

SPRINKLE

Spread extra payments as

you’d like.

WHAT

MOTIVATES

YOU?

OUTSMART YOUR DEBT

INTEREST

RATE

MONTHLY

PAYMENT

INTEREST OVER

LIFE OF THE LOAN

TOTAL COST OF

LOAN

Current

Loan18% $254 $5,236 $15,236

Refinancing

(same term)10% $212 $2,748 $12,748

Pay more

minimum10% $254 $2,170 $12,170

$10,000 loan at 18% for 5 years

Round Up 10% $275 $1,963 $11,963

Paid off in 3.7 years and

save $3,273 in interest.

HUECU.ORG/CALCULATORS

WHAT IF DEBT IS GREATER

THAN INCOME?

DEBT MANAGEMENT PLAN (DMP)

• Reduce interest rates on

debts

• Provide financial

counseling

• Cost based off state

($75 max monthly in MA)

• Debt Management Plans

are not the same as Debt

Settlement.

CREDITOR PAYMENT

BEFORE DMP

PAYMENT ON

DMP

Creditor A $132 $76

Creditor B $235 $185

Creditor C $80 $76

Creditor D $62 $22

Creditor E $518 $413

Creditor F $81 $68

$1,108 $840

DMP: PROS and CONS

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76%

GREENPATH

FINANCIAL

WELLNESS

Empowering people to lead financially healthy lives.

• Free for HUECU community

• Budget counseling

• Credit report review

• COVID-19 Counseling

• Immediate counseling

• Confidential

• Flexible Hours Monday –Thursday 8 a.m. - 10 p.m.

Friday 8 a.m. - 7 p.m.

Saturday 9 a.m. - 6 p.m.

HUECU.org/GreenPath

877-337-3399

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1. Know Your Starting Point

2. Save for Tomorrow

3. Understand What You

Owe

4. Know Your Personality.

5. Reduce, don’t add, Debt.

NEXT STEPS

BLOG.HUECU.ORG

@myhuecu