Consumer Credit Counseling Service of Southern Oregon, Inc

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• Consumer Credit Counseling Service of Southern
  Oregon, Inc
• www.cccsso.org

Ashland High School November 18
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What Is Interest?

• Interest is what you pay for the privilege of
  using someone elses money.
• Interest is also paid to you by a financial
  institution to use your funds.

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But Im still in High School!

• Right now you have a clean slate
• The best time to prevent debt is now
• Knowing how credit cards, car loans, mortgages,
  and savings work will help you make better
  decisions in the future

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Wal-mart Television A

• Wal-mart has a color television on sale for
  300.00
• The salesperson says you can take home the
  television now.
• You have to make a payment of 25.00per month
• You have to pay 24 interest to Wal-mart to take
  home your TV now.

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Wal-Mart Television A
Pay Interest Principal Balance
1st month 25.00 6.00 19.00 281.00
2nd month 25.00 5.62 19.38 261.62
3rd month 25.00 5.23 19.77 241.85
4th month 25.00 4.84 20.16 221.69

13th month 25.00 .90 24.10 21.07
Totals 346.07 46.07
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Wal-mart Television B

• Wal-mart has a color television on sale for
  300.00
• You want to save 25.00 per month towards buying
  a 300.00 TV.
• Your bank will pay you 2 interest on your
  savings account

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Wal-Mart Television B
Beginning You Pay Old Balance The Banks New Balance
1st month 0.00 25.00 25.00 0.50 25.50
2nd month 25.50 25.00 50.50 1.01 51.51
3rd month 51.51 25.00 76.51 1.53 78.04
4th month 78.04 25.00 103.04 2.06 105.10

11th month 279.22 25.00 304.22 6.08 310.30
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Best Buys Credit Card Offer

• Apple - iPod touch 64GB MP3 Player
  (4th Generation - Latest Model) Black
• 399.99
• 18 Months .. No interest Plan

No Interest storewide on all purchases if paid in
full within 18 monthsInterest will be charged
to your account from the purchase date if the
purchase balance is not paid in full within 18
months or if you make a late payment. Minimum
total purchase of 249 required. Required minimum
payments is greater of 10 or 1 of balance, plus
billed interest charges, plus any late fees, or
it can also be 2.5 of balance if card issued by
Chase. Online and in-store offers may vary.HSBC
Financing InfoOn approved purchases on the Best
Buy consumer credit card by HSBC Bank Nevada,
N.A. Min. interest charge 2. Certain rules
apply to the allocation of payments and interest
charges on your promotional purchase if you make
more than one purchase on your credit card. Call
1-888-367-4310 or review your cardholder
agreement for further information.HSBC Deferred
Interest Info Variable APRs as of
10/01/2010Plan A For Accounts generated on or
after 06/29/10 Variable Standard Rate APR
25.24. Variable Penalty Rate APR 29.99. For
Accounts generated before 06/29/10 Variable
Standard Rate is 24.24. Variable Penalty Rate is
29.24. Plan B Variable Standard APR 27.99.
Variable Penalty APR 29.99.
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Best Buy iTouch.

• No Interest storewide on all purchases if paid in
  full within 18 months
• Interest will be charged to your account from the
  purchase date if the purchase balance is not paid
  in full within 18 months or if you make a late
  payment.
• Variable Penalty Rate APR 29.99.

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Best Buy iTouch
The way you hope it works
Balance Payment New Balance
1st 399.99 22.00 377.99
2nd 377.99 22.00 355.99
3rd 355.99 22.00 333.99

17th 47.99 22.00 25.99
18th 25.99 25.99 0.00

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Best Buy iTouch
The way it most likely will happen
Balance Payment 2.5 Int. New Balance
1st 399.99 22.00 10.00 387.99
2nd 387.99 22.00 9.70 375.69
3rd 375.69 22.00 9.39 363.08

18th 149.61 22.00 3.74 131.35
24th 32.97 22.00 0.82 11.79
25th 11.79 11.79 0.00 0.00
Totals 539.79 139.80
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40 Flat Screen TV

• The flat screen costs 1800
• Sears is letting you take home the TV
• They are charging you 18 interest
• You have to pay a minimum of 2.5 of the balance
  per month, with a minimum payment of 10.00

Month Min Pay Int. Paid Prin. Paid Balance
1st 45.00 27.00 18.00 1,782
2nd 44.55 26.73 17.82 1764.18
3rd 44.10 26.46 17.64 1746.54
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40 Flat Screen Continued
Month Min Pay Int. Paid Prin. Paid Balance
209th 10.00 0.46 9.54 21.43
210th 10.00 0.32 9.68 11.75
211th 10.00 0.18 9.82 1.93
212th 1.93 0.00 1.96 0.00

• 212 Months is equal to 17 years 9 months
• Your 40 television cost 1800

• The interest you paid to Sears is 2,315.32
• The total coast of your television was
  4,115.32

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Your Credit Card Statement
Balance Due Minimum Payment Interest Rate Time to Pay Off Total Cost of Purchase
1800 45.00 18 18 Year 4100
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What is a credit score?

• A number that tells people lending you money how
  safe it is to do that
• A number used to determine whether to rent you an
  apartment
• Employers are looking at peoples credit scores
  to see how they manage their own money.

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How do you get a good Credit Score?

• Pay your bills on time
• When you borrow money, pay it back promptly
• Dont borrow more money than you can
  comfortably pay back

How do you get a bad score?

• Miss payments entirely
• Make payments that are less than agreed
• Make payments later than agreed
• Spend more than the banks let you

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Auto Class 101

• Buying a 12,000 SUV
• You have saved 2,000 towards to down payment
• You have to finance 10,000 to buy the car

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Auto Class 101
The Terms 5 Year Loan
Amt Financed Interest Rate Monthly Pay Total Interest Total Payments
10,000 6.5 168.10 2,103.15 12,103
10,000 12.00 195.50 4,076.14 14,076
10,000 18.00 228.08 6,421.61 16,422
10,000 24.00 263.27 8,955.32 18,955
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A Higher FICO Score Saves You Money
30 Year Mortgage
Loan Amount 200,000
FICO Score APR Monthly Payment Total Int. Paid Money Saved
760-850 4.47 1,010 163,600
700-759 4.69 1,034 173,320 9,720
640-659 5.52 1,139 210,040 46,400
620-639 6.08 1,209 235,240 71,640
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• Please fill out the evaluation
• We appreciate the input
• Thanks.. And Go Grizz

541-779-2273www.cccsso.org