1. Office of the Chapter 13 Trustee
Personal Financial Management Class

2. CLASS GOALS Budget Development Money Management Wise Use of Credit
Consumer Information

3. The average American has a financial emergency once every 18 months!
The use of credit or the incurring of debt is prohibited while in Chapter 13.
90% of Americans have no savings.

4. What’s really important?
Where do I want to go from here?

5. YOUR Plan is YOUR Decision….
Goals
Personal Financial
Choices
Way You Want to Live
Things You Want to Have
Things You Want to Do
Ideals
Beliefs
Values
Philosophy
Communication
Attitude
Components of Good Money Management

6. 1 - Wants v. Needs

7. 2 - SET S.M.A.R.T. GOALS Specific Measurable Attainable Relevant
Time-related

8. LONG TERM = 5 years +
Set Goals
Short term = 1 year or less

9. TAKE ACTION:
I will save “X” number of dollars for Christmas presents and parties by December 1. 1. 2. 3.

10. Skills needed to achieve goals
1 Focus – reminders or pictures
Set priorities
Manage time wisely
4 Evaluate progress
5 Adjust goals if necessary
6 Celebrate success

11. Inventory your business
Write down everything you spend every day for one month

12. GETTING STARTED (Gross = the whole enchilada)
GROSS Income______________
- TT payment (if payroll deducted)
- Insurance deductions
- IRA contribution
** NET Income _______________ (Net = that itty, bitty taco you take home)
- fixed expenses (mortgage/car)
- periodic expenses (home repair/auto registration)
- variable averages (utilities/groceries/fun/habits)
= ___________________ FOR SURPRISES/FUTURE
(Gross = the whole enchilada)
Teachers Manual Page 4-1: Unit Objectives (Overhead 4-1)

13. Types of Expenses Types of Expenses Examples
Fixed Mortgage, Rent, Car Payments, Child Support
Periodic Insurance (house, car) Property/Income Taxes
Variable Clothing, Food, Phone, Entertainment

14. GETTING STARTED GROSS Income______________
- TT payment (if payroll deducted)
- Insurance deductions
- IRA contribution
** NET Income _______________ (use lowest amount – DO NOT include overtime)
- fixed expenses (mortgage/car)
- periodic expenses (auto registration/home repair)
- variable averages (utilities/groceries/fun/habits)
= ___________________ FOR SURPRISES/FUTURE**
** This is where decision making comes into play.

15. Buyer Beware!

16. Consider when shopping
- Compare prices and quality
- Research before buying
- Plan shopping in advance
Walk away, think about it before you buy
Don’t buy on impulse
Remember: The sales people work for the
seller

17. Debt Warning Signs Don’t Have Enough Saved for Emergencies
Make only Minimum payments on CC bills
Routinely Spend MORE than you earn
Transfer balances from one card to the other instead of making payments
Unsure of total amount you owe creditors
Bounced Checks
Use more than your total income just to pay off debts

18. CREDIT REHABILITATION
Lynda Woods
Ext 28572
Amy Tate-Almy
Ext 28574

19. Kinds of Credit Long-Term Short-Term Secured Unsecured
Mortgage, car loan, installment loans
Short-Term
Items or services in a single payment within a given period of time, usually with no interest charge. Example: Utility bills
Secured
Something of value promised to lender
Unsecured
Loan without collateral higher interest rate
5-4 5

20. Other forms of Credit Rental Purchase (Rent to Own) Lease
Use an item for a period of time, then return it if you desire. Weekly or monthly payments
Lease
Use a car for a period of time, the down payment and monthly payments are almost always lower than purchasing a car. Costs more in long run

21. United States Bankruptcy Court Northern District of Texas
Sample Matrix, p 1
United States Bankruptcy Court
Northern District of Texas
Fort Worth Division
IN RE: name CASE NO: XXXX-DML CHAPTER: 13
VERIFICATION OF CREDITOR MATRIX

22. Sample Matrix, p 2 ABC Creditors PO Box 1234 Anyplace, USA 00000
Credit Systems
5678 Mickey Mouse Lane
Disney, CA 99999
GMAC
PO 9876
Cargo, MI 98765
XYZ Jewelers
4567 Diamond Circle
Emerald Hills, AZ 54871

23. Get Off and Running NOW with your Credit !!!!
Snail Mail:
Annual Credit Report Request Services
POB
Atlanta, GA

24. Credit Report Says about you Negative Information
Identification and Employment Data
Payment History
Inquiries
Public Record Information
Negative Information
Collection accounts, late payments, charge-off, days late, bankruptcy, tax liens, judgments, excessive inquiries, accounts closed, Trans Alert, Hawk Alert (potential fraud indicators)

25. Texas Dept. of Insurance
Texas Fair Plan
1(888)
1 (866)

26. Maintain Adequate Insurance Coverage
You May Need: You May NOT Need:
Health Mortgage Life Insurance
Disability Insurance on CC balances
Life Flight Insurance
Homeowners or Renters Cancer Insurance
Auto
Consumer Help Line

27. Identity Theft Fastest growing crime in America DFW area
FACTA – federal law helps protect
Review credit reports periodically
Be aware of fraud

28. Consumer Information Federal Trade Commission www.ftc.org/gov
regional office:
Consumer Action Handbook

29. Good luck… reach for the Stars!!!