union plus credit webinar welcome!. introductions jon ross jon ross – union privilege vice...

Union Plus Credit WebinarUnion Plus Credit Webinar

Welcome!Welcome!

Introductions

Jon RossJon Ross – Union Privilege vice president

Union Privilege develops and manages credit education programs for union members

Gerri DetweilerGerri Detweiler - Consumer credit expert

Dedicated consumer advocate ensuring that credit practices better serve, inform and protect consumers

3,000 + interviews including CNN, The New York Times, Dateline, Readers Digest and the Today Show

Testified before Congress

Poll: What is your biggest credit concern?

Credit card debt

Mortgage debt

Poor credit score

Auto loan debt

Student loan debt

How to Get and Keep Good Credit

Why Good Credit is So Important

Smart Credit Card Strategies

Steps to Better Credit

Debt Reduction Strategies

How Credit Impacts You

Approval for personal loans/credit Interest rates Home and auto insurance premiums Mortgage insurance Daily ATM withdrawal limits Deposits on utilities Jobs Renting a home

Knowledge + Action = Savings

If all consumers raised their scores by just 30 points,

savings would be $16.4 billion.

Raise Your Credit Score

From 680 to 710

$200,000 mortgage: 6.095% to 5.811%

Savings: $432 a year

$20,000 auto loan: 8.272% to 7.148%

Savings: $168 a year

Auto insurance: $100 good credit discount

Savings: $100 a year

$10,000 credit card: 19.8% to 12%

Savings: $780

Total Savings =

$1,480 First Year Alone!

Poll: Have any of these happened to you?

Charged a late fee

Charged an overlimit fee

Rate raised after a late payment

Rate raised for no apparent reason

None of the above

Credit Card Fees

Late fees as high as $39.

Penalty interest rates as high as 30%. Often triggered by SINGLE late payment, overlimit or returned check.

Universal default - “any time, any reason” - raises credit card rates to as high as 30%.

Reduced credit limits = overlimit fees or lower scores.

Smart Credit Card Strategies

Read your statements for due date, APR & credit limit

Pay cards as soon as you get the bill

Set up online payments and alerts

Speak up if changes do occur

Build good credit for the best deals

How Credit Scores WorkHow Credit Scores Work

FICO Score BasicsFICO Score Basics

35% payment history - recent most important

30% debt - high utilization 15% length of credit history 10% new credit 10% types of credit

3 Steps to Better Credit3 Steps to Better Credit

1.Review Your Credit Report and Address Negatives

2.Build Positives

3.Monitor and Maintain

33 Steps to Better CreditSteps to Better Credit

Step One: Review Credit Report Step One: Review Credit Report and Address Negativesand Address Negatives

Understand reporting periodsDispute inaccuraciesNegotiateLet time heal the wounds

3 Steps to Better Credit3 Steps to Better Credit

Step Two: Build PositivesStep Two: Build Positives

Positive credit references paid on timeMix of credit typesDon’t close old accountsAuthorized users bewareSecured credit card

3 Steps to Better Credit3 Steps to Better Credit

Step Three: Monitor and MaintainStep Three: Monitor and Maintain

Check your credit report free: AnnualCreditReport.com

Consider credit monitoring Set up online bill payment

Poll: How concerned are you about debt?

Not concerned – I don’t carry much debt

Somewhat concerned – I’d like to be able to pay it all off

Very concerned – it is stressful and I don’t know what to do

Extremely concerned – I’m in deep trouble

How to Cut DebtHow to Cut Debt

Build A PlanBuild A Plan

Write down all debts/rates/payments

Track spending for one month

Pay highest rate unsecured debt first

Commit to a fixed repayment amount

Keep your eye on the prize!

AccelerateAccelerate ResultsResults

Negotiate with current issuersTransfer balances to lower ratesShop for better deals if neededAdd extra $$

The Cost of DebtThe Cost of Debt

Example: two credit cards

1. $5000, 16%, min. payment $125

2. $2000, 19.8%, min. payment $80

19 years/11 months to pay off

$6,682 in interest

Action = ResultsAction = Results

Negotiate/transfer both rates down to 12%

Add extra $25/monthKeep level payment of $225/monthStop charging

• Total interest drops to $1,427• Paid off in 3 years and 2 months

Other OptionsOther Options

Consolidate With…?Consolidate With…?

Personal Loan Home Equity Retirement Plan $ Credit Counseling

You can do it!You can do it!

Start today! Create a plan Watch for traps Get help if needed

Help from Union PrivilegeHelp from Union Privilege

UnionDebtHelp.com

UnionPlus.org/CreditEducation

UnionPlus.org/SaveMyHome

UnionPlus.org/Budgeting

UnionPlus.org/CreditScore

UnionPlus.org/SecuredCard

Questions and Answers

Visit UnionPlus.org/CreditCounseling

Speak with a credit counselor:

1-877-833-1745