Paying Off Holiday Debt

Shay OlivarriaFinancial Education Speaker & Author

Bigger Than Your Block

• What credit is • Credit card myths• The two most important strategies to pay

down debt• How the CARD Act helps you pay down

debt faster than ever before• How to make your credit card work for you

What We’ll Cover:

Shay Olivarria Bigger Than Your Block

• Started Bigger Than Your Block in 2007• Has written 3 books on personal finance• Speaks about personal finance at schools,

non-profits and businesses• Has traveled to 9 countries on 3 continents

Who is Shay Olivarria?

Shay Olivarria Bigger Than Your Block

What Credit Is

Shay Olivarria Bigger Than Your Block

There are 3 major credit bureaus in the US. Each one of them has a report and score for you. Those 3 reports and scores may not be the same.

A credit score and a credit report are two different things.

www.AnnualCreditReport.com

Reports are free. Scores are NOT free.

Experian TransUnion Equifax

What Credit Is

Shay Olivarria Bigger Than Your Block

Have you paid your bills on time in the past?

How much credit have you used vs. how much credit do you have available?

How long have you used credit?

How often have you applied for new credit?

Do you have revolving or installment payments?

• Checking your credit reports/scores lowers your credit scores

• Using a company to settle debts is always best

• Paying off debts will remove it from my credit history

• Debts like library fines and parking tickets don’t count

Credit Myths

Shay Olivarria Bigger Than Your Block

No. Giving permission for potential lenders to check your reports/scores lowers your scores.

Nope. Not every lender wants to deal with a middleperson and not all companies are the same. Use a non-profit credit counseling organization if you must.

Your report will note that the debt has been paid off. The mention of the debt will remain.

There is a section of the credit report explicitly for these kinds of debts.

• Smallest Debt– List all debts– Pay smallest debt off first– Pay next smallest

• Largest Interest Rate– List all debts– Pay debt with highest interest rate first

– Pay debt with next highest interest rate

Debt Payment Strategies

Shay Olivarria Bigger Than Your Block

• Decline is back – no over-limit charges unless you agree

• More than minimum – goes to highest interest rate debt

• Anchored dates – no more “floating due dates”

• Snazzy statements – how long it will take you to finish paying

• Under 21 – may not have a card

How the CARD Act Helps

Shay Olivarria Bigger Than Your Block

• Build credit – don’t use more than 30%

• Earn points – pay off balance every month and spend the rewards

• Manage spending plan – keep all spending in one place, if you pay off balance every month

• Provides safety – provides insurance against scams

Credit Cards As a Tool

Shay Olivarria Bigger Than Your Block

• Make a realistic spending plan• Take information off line• Put everything in your cart• ROI sales• Stick to a list• Keep a Post-It Note on your card(s) • Use the envelope system• Leave the card(s) at home

Tips - Overspending

Shay Olivarria Bigger Than Your Block

• Have “the talk”• Agree on parameters• Give everyone a job• Post goals where everyone can see them• Talk about progress• Reward yourselves

Tips – Getting Loved Ones on Board

Shay Olivarria Bigger Than Your Block

• The Consumer Financial Protection Bureau http://www.consumerfinance.gov/

• Federal Fair Trade Commission http://www.ftc.gov/

• National Foundation for Credit Counseling https://www.nfcc.org/

Where to Turn for Help

Shay Olivarria Bigger Than Your Block

• How to choose a credit counselor http://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor

• Approved credit counselors by state and language http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm

Where to Turn for Help cont ..

Shay Olivarria Bigger Than Your Block

Questions?

Shay Olivarria Bigger Than Your Block

• Sign up to get email updates receive my eBook “You Can’t Take It With You” 50,000+ have read it so far!

• Register for an EMPOWERED Series event and get a $14 savings + a free copy of my Amazon.com best seller, “Money Matters: The Get It Done in 1 Minute Workbook

http://www.eventbrite.com/o/shay-olivarria-5633136853

Thank You Gifts

Shay Olivarria Bigger Than Your Block

Only 15 in each city. Register now!