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Brought to you by Michigan’s Assistive Technology Program at MDRC.

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Use the chat function on the right hand side.

Questions and comments are encouraged and expected!

The session is being recorded. We will start recording now.

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How to Evaluate the Real Cost and Avoid the Pitfalls

November 10, 2011Glenn Ashley, UCP MichiganKenneth Ashley, Free Agent

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Don’t throw it away!

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Located in low income neighborhoods. Why?? Easy for people to find the “store”.

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Borrow $100, fee is $15 for 2 weeks Interest rate? 15%Annual Interest Rate

• 15 X 26 = 391% APR

Source: Michigan Attorney General www.michigan.gov/ag

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Roll the $100 loan forward every 2 weeks, until you reach the maximum allowed by law.

How much will you owe? • $676

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Rip Off!!!!!(Not a wise use of your money!)

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How many times more does it cost to buy from Rent to Own?

Pay $1,000 for a $300 computer?

Just $15 per week for 18 months • How much did his $300

computer cost him? • $15 X 18 = $270?

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Pay for 18 months, not 18 weeks! • 18 months is 78

weeks• $1,170 for the $300

computer

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Please use the public chat area to type your answers and comments.

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Michigan Assistive Technology Loan Fund

UCP Michigan4970 Northwind Drive, Suite 102East Lansing, MI 48823Phone 517-203-1200Ask for Michele

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At $10 per week, 7% interest, • Pay it off in 7 months • Costs you $309

Congratulations, you have saved $861!

(Note – not all computer purchases are eligible for loans from MATLF.)

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They have research to back it up• Suze Orman • Dave Ramsey• Larry Burkett

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Difference between safe and scary?

Advertisers on TV - Run Away!

An expert who is selling you a product? On commission?

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Find a local organization through the National Foundation for Credit Counseling (NFCC)• Phone: 1-800-388-2227• Website: www.nfcc.org

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Bad Idea: Paying someone else to do what you

can do yourself.Worse idea: Paying to remove accurate info from

your credit report. (It’s a scam.)Even worse idea: Lying to remove accurate information

It’s a federal crime.

We have an astounding power to wipe out thousands of dollars of your debt.

Most accounts have a one-time settlement rate that’s preapproved (typically 15 to 35 percent on credit card debt).

-from Reader's Digest magazine October 2011 , p 44.ReadersDigest.com

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A lot of agencies buy debt for pennies on the dollar, so always start your settlement offer low, maybe 25 cents on the dollar.

Say something like “I have $200 that I can apply toward this debt. Will you accept that as payment in full?”

If I say no, ask what I’m willing to accept as a settlement and negotiate from there.

-from Reader's Digest magazine October 2011, p 44.ReadersDigest.com

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Debt is the symptom Over-spending and under-saving is the

problem Lower payment for longer term =

More money for the Debt Con. Company

AmeriDebt – founded by Andrus Pukke Hidden fees and deceptive practices took

$170 million out of customers’ pockets. (FTC)

It is now out of business. (similar ones pop up and disappear)

Place to check:Attorney General’s Office

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If I threaten to have you arrested, use profanity, or call before 8 a.m. or after 9 p.m.

Those are violations of the Fair Debt Collection Practices Act.

Report me to your state attorney general's office (naag.org) and the Federal Trade Commission (ftc.gov).

-from Reader's Digest magazine October 2011, p 45.ReadersDigest.com

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Ramsey says that “Consumer Credit” is the best.

Your credit is still trash.

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To benefit from Debt Consolidation Must change your spending habits Who can teach you to do that?

• Suze Orman• Dave Ramsey• Larry Burkett books

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Late paymentsMaxing out credit cardsThe Big One:

• Buying things you don’t need or can’t afford.

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How to turn them off• Go to: OptOutPrescreen.com

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Costs you how much? What do you get for it?

Yes, I would like to protect my account by enrolling in Payment Aid. By providing my initials, I have received the Payment Aid Program Summary on the enclosed insert and I want to purchase this optional program. Bill my account $0.87 per $100 of my New Balance until I cancel. If you cancel this within the first 30 days, you will not be billed.

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If you owe $1000, you pay $8.70 for the insurance.

Your minimum payment is $10.00.

You have almost

doubled your payment for no good reason.

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Ways companies get around it• Promoting business credit cards

for consumers

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Insurance from bank to cover a loan• Same as Credit

Card insurance• Buy term life

insurance instead

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What is the Michigan Lottery?• A tax on people

who can’t do math.

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Infomercials: “Secrets to Get Rich”

Guess who gets rich? Better Idea: Get Rich Slowly

• www.GetRichSlowly.org

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Buy a brand new car• New $28,000 car will lose

about $17,000 of value in the first 4 years.

• A $100 bill once a week for 4 years.

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Do business with a local bank or credit union

Check people out

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Opt out of Credit Card offersNever open junk mail or spam

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From: Credit Cards <StartupBusinesses@T.info>Sent: Thu, November 3, 2011 1:12:39 PMSubject: Why are you waiting? Make life easier with a credit card

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Spend less. Less than your income!!!

Pay your bills. On time!

Pay off your debt.Clean up your own credit bureau

records.

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Michigan Attorney General Scam Alerts:http://www.michigan.gov/ag

http://www.GetRichSlowly.org http://www.MissingManual.com/feedback

- choose “Your Money” http://www.DaveRamsey.com http://www.SuzeOrman.com http://www.threerules.org

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“The art is not in making money, but in keeping it.”- Proverb

“It's not your salary that makes you rich, it's your spending habits.”- Charles A. Jaffe