Week 4 - Credit. Ecclesiastes 5:5 - Better is it that thou shouldest not vow, than that thou shouldest vow and not pay.

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1 Week 4 - Credit Ecclesiastes 5:5 - Better is it that thou shouldest not vow, than that thou shouldest vow and not pay. Proverbs 22:1-1A good name is rather to be chosen than great riches, and loving favour rather than silver and gold.

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5 Steps to Financial Freedom 1. Emergency Fund- $ Eliminate Debt 3. Increase Emergency Fund (3-6 month s living expenses) 4. Start Investing for your Retirement 5. Start Investing to help pay for College 6. Pay off Mortgage Early 7. Financial Freedom & Giving Opportunities

6 Steps to get out of debt: Prayer Quit Borrowing money Start saving Start selling Part time Job, overtime Stay consistent, vigilant

7 Debt Payoff List all of you debt, amount, terms, interest rates. Order them by least amount owed Pay the minimum on all and then apply all remaining money to the lowest debt As you payoff a debt you can then put that money towards paying off the other debts faster.

8 Remember Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender. Matthew 6:24 No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon. Romans 13:8 -Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.

9 Difficult Budget Cuts Cable TV Eating Out Downgrade your car Down size your house Cell Phones

10 Credit Score Credit Score - A credit score is a numerical expression based on a statistical analysis of a person"s credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner.

11 Credit Score the Truth Credit score measure of how much you Love debt, not necessarily your financial position Manual Underwriting takes into consideration all factors for the loan

12 Credit Report Fact or Fiction The more money you make the better your score Fiction When you pay off a debt that is past due, it comes off your report Fiction All credit reports are different Fact Closing Credit Cards will help you credit score Fiction

13 Credit Report Fact or Fiction Pulling your own credit report makes your score worse Fiction Disputed Items are removed immediately Fiction Missing or late payments can effect my credit score even if not listed on the report Fact

14 Credit Report Information stays on your credit report for 7 yrs, 10 if you file bankruptcy Only INACCURATE information can be removed Survey say 80% contain mistakes To remove Mistakes Write a certified letter for each incident They have 30 days to investigate or they have to temporarily remove the entry They contact all parties and make a decision

15 Sample Letter to fix a mistake on your Credit Report.

16 Credit Report Get a FREE credit report each year from Experian Equifax Trans Union

17 ID FRAUD Identity theft is most often someone you know, usually a friend or family member Place an alert at the Credit Bureau Get a POLICE Report Remember you owe nothing and pay NOTHING Contact Fraud of each incident and give documentation Be PERSISTANT Victory belongs to the most persevering. Napoleon

18 Telemarketing Telemarketing optoutprescreen.com donotcall.gov dmachoice.org

19 Pay Debt with a Plan Collectors job is to get _MONEY_, not help you Salesman, telemarkets High Turnover Evoke Emotions Always pay NECESSITIES first YOU set the order Psalm 37: 21 The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth.

20 Pay Debt with a Plan They can only call between 8 am 9pm Request they not call at work (certified mail) You can request they stop all communication (not recommend) Can t garnish your wages without COURT action, long process (except IRS and Student Loan)

21 Sample letter prevent creditors from contact you at work.

22 Pay Debt with a Plan Proverbs 3: Withhold not good from them to whom it is due, when it is in the power of thine hand to do it. 28Say not unto thy neighbour, Go, and come again, and to morrow I will give; when thou hast it by thee. Come up with a Pro Rata Data Plan Send a copy of it with your payment Remember the 4 WALLS Food, Shelter, Clothing, Transportation

23 Sample letter to creditors explaining your situation and your plan to pay back their debt using the Pro Rata Data Plan

24 Warrior Quotes If God sends us on strong paths, we are provided strong shoes. Corrie TenBoom Never give in, never give in, never; never; never; never - in nothing, great or small, large or petty - never give in except to convictions of honor and good sense Winston Churchill

25 Money Wasters Brand Loyalty Late Fee / Overdraft Fee / Any Fee Failure to Return Items Extended Warrantees Paying for Storage New Cars Gym Membership / Club Membership Infomercials Food Waste

26 Food Most Families spend 10% of money on food Average American wastes 25% of their food You can save 2.5% of your total budget by not wasting food

27 Food Cook from Scratch Buy generics Make a list and only buy what is on the list, no impulse purchases Values are on lower shelves, items with the largest mark up are at eye level Use coupons Eat before you shop Freeze leftovers

28 Food Don t buy water Substitute cheaper ingredients Weigh pre packed bags, don t get cheated Pick your own fruits when cheaper Keep a container for meat and vegetables in the freezer and put left over scrapes in it, use them to pizza and soups Slice food on your own Grow your own food