Consumer Credit of Des Moines

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Consumer Credit of Des Moines

• Established in 1987, we have
• Helped over 100,000 families
• Find peace of mind through
• Money management and
• Debt reduction.
• Tom Coates

Iowas Largest Credit Counseling Agency
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Consumer Credit of Des Moines

• EACH MONTH WE
• ? See Over 500 New Clients
• ? Serve Over 7000 Existing Clients
• ? Send Over 4 Million to Creditors

Iowas Largest Credit Counseling Agency
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Personal Bankruptcy Filings, 1980-2001Data US
Courts, SMR Research
Excludes small number of filings in U.S.
territories after 1989
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More Consumer Debt Than Ever!

• ? Not counting the medical, utility, child
  support, or alimony debts, we still get a
  consumer debt pile totaling 9.32 trillion as
  year 2000 came to a close. Thats nearly double
  the 4.76 trillion in consumer debt in 1990.
• ? Consumer incomes rose over the same period, but
  not nearly as much as debt rose. In 1990,
  according to the commerce department, the average
  adult earned 18,667. By 2000, that had risen to
  29,177.

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42.9 of Households Nearly Flat Broke

• Percent of US Households With Less Than
• 1000 Non-Retirement Liquid Assets
• 1988 - 33.6
• 1993 - 36.5
• 1995 - 37.8
• 1997 - 42.9
• Todays Projection 45 or more of all
  households have virtually no liquid savings and
  represent families living paycheck-to-paycheck.
  

Source SIPP Research
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Personal Savings Rate, 1980-2001It keeps Getting
Worse
of Disposable Income Saved
Data Commerce Dept. BEA
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Consumer credit as a percentage of personal
income has never been so high!
1980
July 2003
Source Commerce Dept., Federal Reserve
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Eating the HouseHousehold debt as a percentage
of household assets is at a record
1980
Q2 2003
Source Federal Reserve
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New Home Sales                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
          
Source The Survival Report www.agorafinancial.c
om
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Housing Market Ratings History USA 1995 2005
Moderately Affordable
Severely Unaffordable
Affordable
Number of Markets
Seriously Unaffordable

Moderately Unaffordable
Affordable
1995
2005
Source The Survival Report www.agorafinancial.c
om
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The Credit Card Payment Trap
5000 _at_ 20 Interest 100 Monthly
Payment Payoff 9 Years 5000 Principle 5800
Interest
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20,000 Car at 9 Interest
5 Years 415 mth 24,000 3 Years 636 mth
22,896
Identifies If Affordable Eliminates Being
Upside-Down Develops Reserve
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PAYDAY LOANS?
100 Costs 16.67 434 APR 200 Costs 27.38
362 APR
100 _at_ 24 APR .92 200 _at_ 24 1.84
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Saving for Retirement
Age 25 65 2000 Year _at_ 8 606,487
Age 35 65 2000 Year _at_ 8266,427
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Gambling Statistics

• Counties with casinos have 16 higher rate
• of personal bankruptcy. SMR Research

• 19 of Iowa bankruptcies discharged
• primarily gambling debt. ISU Study

• Nearly ½ of casino revenue from problem
• pathological gamblers. 2003 U of Il Study

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Gambling Statistics

• 80 of Iowa casino patrons come from within
• a 40 mile radius

• 3 years after a casino opens, crime costs
• increase over 60 per county resident per year.

• For every 1 of net casino revenue there is a
• cost shift of 2 to all of us. Prof. John
  Kindt, U of Il

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Budget Sheet Front Section
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Budget Sheet Middle Section
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Budget Sheet Back Section
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FICO (credit) Scores
Credit Score Range
300
850
675 Ave.
How They Are Figured
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The higher your FICO scores the less you can
expect to pay for your loan. For example, on a
216,000 30-year, fixed-rate mortgage
A person with a FICO score of 760 or better will
pay 228 less per month for a 216,000 30-year,
fixed-rate mortgage than a person with a FICO
score of 620 thats a savings of 2,736 per
year.