Get Out of Debt Fast with

PowerPay

Erica AbbottJessica TolbertRobby Olsen

Warning Signs of Excess Debt

Relying on credit cards for daily purchases

Using home equity line of credit to extend purchasing power

Paying minimum on credit card bills Using cash advances to keep afloat Losing sleep over debts

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How to Dig Out Assess your finances

Add up debts Use PowerPay to develop a plan to

repay Stop borrowing

Use cash or debit card for daily expenses

Use 1 credit card & pay in full each month

Keep 1 card in reserve… in case of theft or fraud

Call creditors before they call you 3

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What type of debt do you have?

Secured debts Have some type of

collateral Items could be

repossessed or foreclosed Example: car, house

Unsecured debts

No collateral bill collectors calling Example: credit card

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How much do you owe?

Make a complete list:Creditor name

Total balanceMonthly payment Interest ratePayments in arrears

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Check your Credit Report at annualcreditreport.com

• How to contact Creditors• How much debt you owe

• Be sure to check all three• See http://www.usu.edu/fpw/ for more

information on credit reports

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Why am I in debt?

Am I living beyond my means? Job loss, or pay reduction Unexpected medical expenses Insufficient insurance No emergency fund

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Examine Your Expenditures & Develop a Spending Plan

Is the plan realistic? Can I meet all my monthly

obligations? How can I reduce spending to

put more money towards my debts?

How can I increase my income? Will I stick to it?

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Credit Card Rates

Introductory Rate = 0%Typical Rate = 18% or

higher $7,000 balance, yearly

interest payments ~$1,000

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Reduce Credit Card Rates

Call your credit card company Let them know your current interest

rate and your habit of paying on time (if true)

Tell them other credit card companies are offering lower rates

Ask if they will lower your current rate

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PowerPay Debt Analysisget out of debt fasterPay less total interest

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Power Pay Debt Analysis

Create a List of debts & creditors Prioritize debts Pay at least minimum each

month When a debt is paid, put same $

towards highest priority debt Add extra dollars to highest

priority debt

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A person with a total debt of $30,381 will pay $38,966 over 9 years without PowerPay

BUT with PowerPay only pay $34,819 & be debt free in only 3 years

The Results…

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Power Pay Saves You…

6 Years

$4,146

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Get Back on the Right Track

Create a spending plan.

Stick to it!

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Get Back on the Right Track

Use community resources USU Family Life Center County Extension office Financial Planning for Women

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Get Back on the Right Track

Establish better credit habits Pay bills on time Don’t create more debt

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Get Back on the Right Track

If your monthly obligations are not affordable, reduce spending.

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Choices That Could Get You in Trouble

Bouncing checks Postdated checks Payday lenders Rent to own Pawn shops For-profit debt counseling Get rich quick schemes

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Remember…

It’s not the amount you make, it’s what you do with it that

matters.

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Questions?

Experiences to share? What works for you?

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Evening Program

Please tell your friends that this program will be repeated this evening

7-8:30 pm (more time for Q&A) USU Family Life Center, 493 N 700 E Free, easy parking

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FPW

Website: www.usu.edu/fpw Blog: http://fpwusu.blogspot.com/ FB: facebook.com/

FinancialPlanningforWomen

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Upcoming FPW August 8: Q& A with insurance

agents Sept. 12: Managing your $ IN

retirement Oct. 10: The Psychology of Money Nov. 7 (FIRST Wed.) TBA

Housing & Financial Counseling Center

493 N. 700 E. LoganAt the bottom of Old Main Hill

435-797-7224

Family Life Center

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• Budget Planning

• Debt Management

• Credit Use

• Life Stage Responsibilities

• Bankruptcy Intervention

Financial Management

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Power Pay

www.powerpay.org Stop borrowing or charging until debts

are paid off Make power payments. As one debt is

paid off, move that payment to another debt rather than spending it on something else.

Saves money in interest and pays debts faster.

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• Home Purchase

• Responsibilities of Home Ownership

• Mortgage Default

• Reverse Mortgage

Housing Counseling

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