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smart Brought to you by Michigan’s Assistive Powered By Docstoc
					Brought to you by Michigan’s Assistive
    Technology Program at MDRC.




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     Use the chat function on the right
      hand side.
     Questions and comments are
      encouraged and expected!
     The session is being recorded.
     We will start recording now.




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    How to Evaluate the Real Cost and
            Avoid the Pitfalls

                          November 10, 2011
                  Glenn Ashley, UCP Michigan
                  Kenneth Ashley, Free Agent




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    Don’t throw it
        away!




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       Located in low income neighborhoods. Why??
       Easy for people to find the “store”.


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     Borrow  $100, fee is $15 for 2 weeks
     Interest rate? 15%
     Annual Interest Rate
      • 15 X 26 = 391% APR

                Source: Michigan Attorney General
                            www.michigan.gov/ag


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     Roll the $100 loan
      forward
      every 2 weeks, until you
      reach the maximum
      allowed by law.
     How much will you
      owe?
      • $676


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    Rip Off!!!!!
    (Not a wise use
     of your money!)




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     How many times more does it cost
      to buy from Rent to Own?
     Pay $1,000 for a $300 computer?



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        Just $15 per week for 18
         months
         • How much did his $300
           computer cost him?
         • $15 X 18 = $270?




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    Pay for 18 months, not
     18 weeks!
     • 18 months is 78
       weeks
     • $1,170 for the $300
       computer




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        Please use the
         public chat area to
         type your answers
         and comments.




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        Michigan Assistive Technology Loan Fund

         UCP Michigan
         4970 Northwind Drive, Suite 102
         East Lansing, MI 48823
         Phone 517-203-1200
         Ask for Michele



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        At $10 per week, 7% interest,
          • Pay it off in 7 months
          • Costs you $309
      Congratulations,  you
         have saved $861!

     (Note – not all computer
     purchases are eligible for loans
     from MATLF.)

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          have research to back it up
      They
      • Suze Orman
      • Dave Ramsey
      • Larry Burkett




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      Difference between safe
       and scary?
      Advertisers on TV - Run
       Away!
      An expert who is selling
       you a product? On
       commission?

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      Finda local organization
      through the National
      Foundation for Credit
      Counseling (NFCC)
      • Phone: 1-800-388-2227
      • Website: www.nfcc.org

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     Bad Idea:
      Paying someone else to do what you
       can do yourself.
     Worse idea:
      Paying to remove accurate info from
       your credit report. (It’s a scam.)
     Even worse idea:
      Lying to remove accurate information
       It’s a federal crime.

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   We have an astounding power to wipe out
    thousands of dollars of your debt.
   Most accounts have a one-time settlement rate
    that’s preapproved (typically 15 to 35 percent on
    credit card debt).

      -from Reader's Digest magazine October 2011 , p 44.
                                      ReadersDigest.com
        A lot of agencies buy debt for pennies on
         the dollar, so always start your settlement offer
         low, maybe 25 cents on the dollar.
        Say something like “I have $200 that I can
         apply toward this debt. Will you accept that as
         payment in full?”
         If I say no, ask what I’m willing to accept as a
         settlement and negotiate from there.
             -from Reader's Digest magazine October 2011, p 44.
                                            ReadersDigest.com



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        Debt is the symptom
        Over-spending and under-saving is the
         problem
        Lower payment for longer term =
         More money for the Debt Con. Company




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        AmeriDebt – founded by Andrus Pukke
        Hidden fees and deceptive practices took
         $170 million out of customers’ pockets.
         (FTC)
        It is now out of business. (similar ones pop
         up and disappear)
        Place to check:
            Attorney General’s Office



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         If I threaten to have you arrested, use
          profanity, or call before 8 a.m. or after 9 p.m.
         Those are violations of the Fair Debt Collection
          Practices Act.
         Report me to your state attorney general's office
          (naag.org) and the Federal Trade Commission
          (ftc.gov).

           -from Reader's Digest magazine October 2011, p 45.
                                          ReadersDigest.com


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      Ramsey says that “Consumer Credit”
       is the best.
      Your credit is still trash.




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       To benefit from Debt Consolidation
      Must change your spending habits
      Who can teach you to do that?
          • Suze Orman
          • Dave Ramsey
          • Larry Burkett books




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      Latepayments
      Maxing out credit cards
      The Big One:
       • Buying things you don’t need
         or can’t afford.


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        How to turn them off
         • Go to: OptOutPrescreen.com




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    Costs you how much?
    What do you get for it?

         Yes, I would like to protect my account by enrolling in
         Payment Aid. By providing my initials, I have received the
         Payment Aid Program Summary on the enclosed insert
         and I want to purchase this optional program. Bill my
         account $0.87 per $100 of my New Balance until I cancel.
         If you cancel this within the first 30 days, you will not be
         billed.




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    If you owe $1000, you
     pay $8.70 for the
     insurance.
    Your minimum payment
     is $10.00.
    You have almost
     doubled your
     payment
     for no good reason.


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  Ways     companies get around it
     •   Promoting business credit cards
         for consumers




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  Insurance    from bank
     to cover a loan
     • Same as Credit
        Card insurance
     • Buy term life
        insurance instead


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  What    is the
     Michigan Lottery?
     • A tax on people
       who can’t do math.




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   Infomercials: “Secrets to Get
    Rich”
  Guess who gets rich?
  Better Idea: Get Rich Slowly
   • www.GetRichSlowly.org




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  Buy   a brand new car
     • New $28,000 car will lose
       about $17,000 of value
       in the first 4 years.
     • A $100 bill once a week for 4
       years.


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      Do business with a local bank or
       credit union
      Check people out




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      Optout of Credit Card offers
      Never open junk mail or spam




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 From: Credit Cards <StartupBusinesses@T.info>
 Sent: Thu, November 3, 2011 1:12:39 PM
 Subject: Why are you waiting? Make life easier with a credit card




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      Spend  less.
       Less than your income!!!
      Pay your bills.
       On time!
      Pay off your debt.
      Clean up your own credit bureau
       records.

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      Michigan Attorney General Scam Alerts:
       http://www.michigan.gov/ag
      http://www.GetRichSlowly.org
      http://www.MissingManual.com/feedback
       - choose “Your Money”
      http://www.DaveRamsey.com
      http://www.SuzeOrman.com
      http://www.threerules.org



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“The art is not in making
money, but in keeping it.”
- Proverb

“It's not your salary that
makes you rich, it's your
spending habits.”
- Charles A. Jaffe


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