1. Managing and Eliminating Credit Card Debt Solutions to help you get debt free

2. Credit Card Debt is a Major Problem in US It’s tough to avoid the buy-it-now messages you are constantly bombarded with  You can’t escape it in everyday life: TV, Radio, Internet even your Smart Phone Not everyone has a credit card, but those who do 58% carry a balance It’s tough to avoid the buy-it-now messages you are constantly bombarded with  You can’t escape it in everyday life: TV, Radio, Internet even your Smart Phone Not everyone has a credit card, but those who do 58% carry a balance

3. The Truth about Debt—Dave Ramsey The Total Money Makeover Myth: Debt is a tool and should be used to help create prosperity. Truth: Debt isn't used by wealthy people nearly as much as we are led to believe. Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree According to a USA Today article about debt, 78% of Baby Boomers have mortgage debt, 59% have credit card debt, and 56% have car payments. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment? This is how the wealthy really build their wealth. Debt is dumb. Welcome to the real world! Myth: Debt is a tool and should be used to help create prosperity. Truth: Debt isn't used by wealthy people nearly as much as we are led to believe. Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree According to a USA Today article about debt, 78% of Baby Boomers have mortgage debt, 59% have credit card debt, and 56% have car payments. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment? This is how the wealthy really build their wealth. Debt is dumb. Welcome to the real world!

4. Now Let’s Look at the Best Ways to Get that Debt Under Control First and Foremost ADDING TO THE PROBLEM

5. Take an Inventory Before you can fix your debit you need to see how deep in debt you are

6. Get Better Rates Work on negotiating your current credit card rates down.  Sometimes you can do this on your own  Find out what your Annual Percentage Rate (APR) is. You can find it on the bottom of your statement  Find out how your rate compares to the National Averages  www.bankrate.com  www.lowcards.com  www.cardtrakcom  There are 5 categories of rates. Make sure you’re in the right one  Super-Prime- Most Credit Worthy  Prime- Average Borrower  Sub-Prime- Below Average  Promotional- New Customers  Punitive- People who Broke the Rules i.e. Missing a Payment Work on negotiating your current credit card rates down.  Sometimes you can do this on your own  Find out what your Annual Percentage Rate (APR) is. You can find it on the bottom of your statement  Find out how your rate compares to the National Averages  www.bankrate.com  www.lowcards.com  www.cardtrakcom  There are 5 categories of rates. Make sure you’re in the right one  Super-Prime- Most Credit Worthy  Prime- Average Borrower  Sub-Prime- Below Average  Promotional- New Customers  Punitive- People who Broke the Rules i.e. Missing a Payment

7. Get Better Rates (cont’d) Armed with this information you can call the credit card company directly  Always talk to a supervisor  Don’t take no for an answer  Call the dedicated Customer Service Line Even a percentage point can save hundreds  Transfer balances on to the lower interest rate card Armed with this information you can call the credit card company directly  Always talk to a supervisor  Don’t take no for an answer  Call the dedicated Customer Service Line Even a percentage point can save hundreds  Transfer balances on to the lower interest rate card

8. Figure out your monthly Income & Costs List all sources of income  If you have an unstable source of income (one that varies) such as sales commissions, don’t put too much dependence on the when figuring your monthly income List your expenses  Take a look at a year’s worth of expenses to see how much you spend each month. List all sources of income  If you have an unstable source of income (one that varies) such as sales commissions, don’t put too much dependence on the when figuring your monthly income List your expenses  Take a look at a year’s worth of expenses to see how much you spend each month.

9. Budget List your essentials, things you can’t live without  Food, Gas, Electric Review your other expenses (not including credit card debt) and see where you can make changes  Your non- essential expenses  Eating Out, Entertainment  Not necessarily cutting things out, but cutting back may be enough to get things under control A good resource to help you calculate your budget  www.thebudgetcalculator.com/index.html List your essentials, things you can’t live without  Food, Gas, Electric Review your other expenses (not including credit card debt) and see where you can make changes  Your non- essential expenses  Eating Out, Entertainment  Not necessarily cutting things out, but cutting back may be enough to get things under control A good resource to help you calculate your budget  www.thebudgetcalculator.com/index.html

10. Compute a Dedicated Fund The amount you can afford to pay for your debts  Subtract your expenses (not including credit card debt) from your income  Negative you’re in trouble  Positive you now know what you have to divide up to pay off your debt The amount you can afford to pay for your debts  Subtract your expenses (not including credit card debt) from your income  Negative you’re in trouble  Positive you now know what you have to divide up to pay off your debt

11. Figure Out a Payoff Strategy Make larger payments to the card with the highest interest rate so it gets paid off before the others Payoff the card with the smallest balance and then work on the others Peer-to-Peer Lender  Borrowing money from one of these lenders at a fixed interest rate that can be 20 to 30 percent lower than most credit cards  Lendingclub.com  Prosper.com  This can save hundreds of dollars in interest  You just need a job and a good credit score to qualify for an online loan for up to about $25,000 Make larger payments to the card with the highest interest rate so it gets paid off before the others Payoff the card with the smallest balance and then work on the others Peer-to-Peer Lender  Borrowing money from one of these lenders at a fixed interest rate that can be 20 to 30 percent lower than most credit cards  Lendingclub.com  Prosper.com  This can save hundreds of dollars in interest  You just need a job and a good credit score to qualify for an online loan for up to about $25,000

12. Stay on Track Stash Your Plastic  Studies show people are more likely to spend more when they use their credit cards then when the pay cash Get Some Motivation & Support  Set a goal  Dream Vacation  Down Payment on a New House  Get Support  Plenty of blogs and forums on the Internet are dedicated to people trying to get out from under credit card debt  Always good to talk to people going through the same thing Stash Your Plastic  Studies show people are more likely to spend more when they use their credit cards then when the pay cash Get Some Motivation & Support  Set a goal  Dream Vacation  Down Payment on a New House  Get Support  Plenty of blogs and forums on the Internet are dedicated to people trying to get out from under credit card debt  Always good to talk to people going through the same thing

13. Track Your Progress Keep an Eye on your spending  Don’t obsess just check in every few months Keep an Eye on your spending  Don’t obsess just check in every few months

14. APPENDIX

15. Sources Sited for this Presentation  Bach, David Start Over, Finish Rich pp. 46 – 49  Creditcards.com – 5 Steps to Eliminate Credit Card Debt  Ehow.com - How to Eliminate Credit Card Debt  Financialplan.about.com – How to Eliminate Credit Card Debt Getting Out of Debt Made Easy  Nationaldebtrelief.com – Eliminate Credit Card Debt – National Debt Relief  Ramsey, Dave The Total Money Make Over  Thebudgetcalculator.com/index.html