2. Disclaimer: The views expressed are those of the presenter and do not necessarily reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve System.

3. Why people get in trouble with Debt
Unemployment, medical bills, or divorce
Could not control spending, did not plan for the future and did not save money
Lacked knowledge of financial and credit matters

5. Speaking of Interest
When you take out a loan, you repay the principal, which is the amount borrowed, plus interest, the amount charged for lending you money. BOTTOM LINE: Those who know about interest, earn it; those who don’t, pay it

7. Analyze debt and develop a strategy
Shop and negotiate for the lowest rate on loans
Save interest expense by paying off loans earlier or choosing shorter terms

8. Avoid Credit Card Debt Pay cash Pay bills on time
Set a monthly limit on charging
Limit the number of cards you have
Choose cards with lowest rates and no annual fee
Don’t apply in order to get a free gift
Steer clear of blank checks companies send you
Pay bills on time

9. Credit Report Shows all your payment history, plus late payments
A credit score predicts the likelihood that you will repay on time
Credit scores range from and are determined by payment history, debt and length of credit history
Factors not considered include age, race or ethnicity, income, job, marital status, education, address or whether you own/rent

10. Components of Your Credit Score

11. Credit Scores

13. Too deep in debt…
Discuss options with creditors before missing a payment
Seek expert help such as local Consumer Credit Counseling Services
Avoid “credit repair” companies that charge a fee