Week 4 Review (Page 97) - · PDF file · 2010-10-13Week 4 Review . Dumping Debt...
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Transcript of Week 4 Review (Page 97) - · PDF file · 2010-10-13Week 4 Review . Dumping Debt...
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Week 4 Review Dumping Debt (Page 97)
10/11/2010FPU Session 5 - Credit Sharks in
Suits
What are the six steps to getting out of debt?1. You must quit borrowing money, you can’t
get out of a hole by digging deeper.
2. You must start saving money, specifically to fund baby step 1 Emergency fund.
3. Prayer Really Works
10/11/2010FPU Session 5 - Credit Sharks in
Suits
What are the six steps to getting out of debt?4. Sell something, have a garage sale. Use e-bay;
sell so much stuff the kids think they’re next.5. Get a part time job or work overtime. If you
don’t have a job, get one. Work like no one else so later you can “really” work like no one else.
6. Use the debt snowball. List your debts smallest to largest and pay minimums on all but the smallest and throw everything you can at the smallest. When the smallest is knocked out, roll you extra payments to the next smallest etc…
10/11/2010FPU Session 5 - Credit Sharks in
Suits
What are the seven baby steps? (In order).Baby Step 1 - $1,000 in emergency fund.
Baby Step 2 – Pay off all debt (except your home ) using the debt snowball.
Baby Step 3 – Save 3 – 6 months of living expenses.
10/11/2010FPU Session 5 - Credit Sharks in
Suits
What are the seven baby steps? (In order).Baby Step 4 - Invest 15% of your income inpre-tax retirement (401(k) – Roth IRA’s etc…)
Baby Step 5 – Fund College for your children.Baby Step 6 - Pay off your home early.Baby Step 7 – Build wealth and give.
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Why is it important to complete Baby Step 1 before moving to Baby Step 2?
If you aren’t prepared when an emergency happens – and it will happen – you will be distracted and thrown off your debt snowball plan.The baby steps establish a proven priority that works consistently in all kinds of situations.
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Video – Credit Sharks In Suits (Page 77)62 minutes
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Small Group Discussion and AccountabilityPage 97
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Free Credit Reportswww.annualcreditreport.com
(877) 322–8228.
10/11/2010FPU Session 5 - Credit Sharks in
Suits
New Credit Card Reform Act as of 2010Rules #1 – Effective Feb 22, 2010Rules #2 – Effective Aug 22, 2010http://www.federalreserve.gov/creditcard/
Note: Business and corporate credit cards also are NOT covered by the protections in the CARD Act.
10/11/2010FPU Session 5 - Credit Sharks in
Suits
www.optoutprescreen.com
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Credit Card Plastectomy
6 cards shred this week22 cards shred this semester
10/11/2010FPU Session 5 - Credit Sharks in
Suits
Homework (Page 97)Review your credit reportFinancial Peace Revisited Reading: Chapters 9 and 22
