Airman & Family Readiness CenterBuilding 794

926-1256

Mr. Anthony Pope

• Behaviors

• Impact on your Credit Score

• The Fix• Spending Plan and Debt Reduction Plan

• Your Future Goals

Do you WANT to reduce debt and SAVE?

The KeyIs to

Modify Habits!

Needs: Food, clothing, shelter,

transportation and insurance

Wants: Everything else

Impulse buying happens when you buy something that you really do not need

There is no thought attached to the purchase

Beware of the checkout stands. While you are waiting your mind will checkout too

We have our weak points when it comes to spending money

We like to spend money on what brings us a sense of immediate satisfaction

Have you every thought, “why did I buy this item?”

We then experience a sense of remorse

Plan meals for all week Pack a lunch Make your own Joe

Make a list and stick to it (mostly) Use Coupons!! Do NOT go to the store hungry! Munch

before you go!

Keep your cards at home (locked up)

Use cash (What a novel idea!) Track what you spend

Stay at home (pull out those old games!)

Search newspapers or online for free community events

Do something that is free Go to the Library and check out a book or a movie—they’re free Exercise: go for a walk, ride a bike, Rec Center, State Parks

Whose responsible for all this spending?

Me, myself and I. Spouse, partner, children, etc. Who ever makes the financial decisions in your household

YOU ARE NOT ALONE

Credit (FICO) Score

Car

Paym

en

t

Credit Score ImpactCredit Score Impact

• Review your credit report

• Dispute errors in writing, certified, return receipt

• Add missing positive information

• Do not add new accounts in order to lower balances on old accounts

• Do not close long-term accounts

• 100 word statement

Cautions About Scams

• Ads Promising Debt Relief• Advance-Fee Loan Scams• Caution against Debt Consolidation• Credit Repair Scams

• Credit Repair Organizations Act• Computers / Phones / Phishing

The top 10 things you can do now to safeguard your identity are:1) Protect your social security number2) Don't carry too many credit cards3) Don't get scammed4) Shred rather than trash5) Check your bills and bank statements6) Stop pre-approved credit offers—

Call toll-free 888-5OPTOUT (888-567-8688)7) Question inappropriate requests for information8) Monitor your credit reports9) Shield your computer from viruses and spies10) Use caution when shopping online

Now that you know what to watch for (habits) …

What’s next???

The FIX???

YOU NEED A

You guessed it...

All the things you spend money on can be divided up into categories

For example:

•Mortgage Payment/ Rent•Car Payment•Groceries•Light Bill•Internet•Cable Bill

•Heating Bill•Phone•Car Insurance•Entertainment•Savings

Available to Budget $3,000 Savings -$250

Available Remaining $2,750 Save for Emergency Savings -$100

Available Remaining $2,650 Mortgage -$1,200

Available Remaining $1,450 Car Payment -$250

Available Remaining $1,200 Groceries -$300

Available Remaining $900 Internet -$50

Available Remaining $850 Cable TV -$75

Available Remaining $775

23

Congratulations!

You’ve just given every dollar a job!

Available Remaining $775 (Debt Reduction) Credit Cards -$300

Available Remaining $475 Phone Bill -$100

Available Remaining $375 Car Insurance -$100

Available Remaining $275 Electric Bill -$75

Available Remaining $200 Entertainment -$200

Available Remaining $0

24

As the month goes along, you will keep track of three things:

25

Notice the focus here is on category balances...

...NOT account balances

What if something unexpected happens and you blow the budget…

what now?

Correct it next month… ...before you begin the next month’s budget.

In November you overspent by $50 Now it’s December 1st. You have $3000 to

budget. First step, subtract the $50. THEN go through your budget, giving every

dollar a job.

December - Available to Budget $3,000

Minus Overspending from November $50

TRUE AVAILABLE FOR DECEMBER $2,950

How much CAN you apply toward Debt?

Just 300?

Highest Interest Rate First?

Use TOTAL amount EVERY until all debts are paid.

Powerpay.org

• Live BELOW your means• Knock down that credit card debt• Stick to your Spending Plan• Develop a plan for retirement savings

TSPIRA’sMutual Funds

401 K’s

Need help getting started? Seek assistance with: A&FRC Staff Your Bank or Credit Union Consumer Credit Counseling www.resourcesone.com Go to the Library and check out

books

• Annual FREE Credit Report(s)annualcreditreport.com

• Consumer Credit Counseling Services (CCCS)• Council of Better Business Bureaus, Inc. (CBBB)

bbb.org/military.html• Federal Trade Commission

ftc.gov• National Crime Prevention Council

• Springboard – Non-Profit Consumer Credit Management ncfe.org/

Airman & Family Readiness Center

926-1256