1. Community Meeting August 1, 2010 Topic: CREDIT trap will destroy your EQUITY

2. What is EQUITY? Property (personal and real) MINUS financial obligations due (debt) to the said property, if any. Property (personal and real) MINUS financial obligations due (debt) to the said property, if any. Equation Equation Property – Debt = EQUITY Illustration examples later on.

3. Asset - Debt = Equity Car loan Car loan $25,000 $25,000 $0 ($2,500) 0 ($2,500) Home Loan Home Loan $350,000 $350,000 $0 Real Estate bubble burst at current market value “say” $250,000 ($100,000)

4. Building equity is important to our financial health If you earned $1 you should spend less than $1. This result into POSITIVE equity. If you earned $1 you should spend less than $1. This result into POSITIVE equity. If you earned $1 and spend $1.10 you incur deficit. This result into NEGATIVE equity. If you earned $1 and spend $1.10 you incur deficit. This result into NEGATIVE equity.

5. What creates NEGATIVE equity Too much debt. Lets get real & use cash! Too much debt. Lets get real & use cash! Easy access to credits like credit cards Easy access to credits like credit cards Anticipation of income (spending future income today) Anticipation of income (spending future income today) Impulse buying habits Impulse buying habits Plastic money vs. cash Plastic money vs. cash Bottom line: You can’t solve credit (debt) by incurring more debt! Who will think GM will go bankrupt?

6. Electronic Fund Transfer (EFT) and Identity Theft Call your bank and document your claim. Call your bank and document your claim. Your account must be credited in 24-hours without any further question. Your account must be credited in 24-hours without any further question. The institution must conduct investigation ASAP and inform you of the results. The institution must conduct investigation ASAP and inform you of the results. Place a fraud alert on your credit report ASAP and review your credit report. Place a fraud alert on your credit report ASAP and review your credit report. TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790 www.transunion.com Equifax: 1-800-525-6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374-0241 www.equifax.com Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9532, Allen, TX 75013 www.experian.com;

7. Question & Answer You may also email your questions to: Noel at nsoria60@gmail.com Salamat po. nsoria60@gmail.com