Title: oney On Your Mind - July 2009 "Surviving the Credit Crunch" PT2

" I need to get -- to interest rate that low interest rate I the end it paid that money back. And the credit glory he kind of in can't worry about that -- that short term because the long term goal is it is that you stack -- up. Opening up a new credit card transferring Allen had an unlocked -- your credit. But you really need to consider that that goal and an aggressively paying and I am plane and so so -- what people had it was that they cannot think on their credit card company and they can -- get that disclosure statement they can be asking for. Even I don't wanna take that that higher rate and you get me back -- and sometimes they cannot you know and you. Reconsider my credit line have all of these good things but often times it's a very automatically computer generated. Reductions sometimes if you -- talk to somebody explain the situation and at some and you can win and I -- clients have him do some of that but the bigger point air making I think as a great -- do. In that. It's not just about. Whatever you can to reduce the rate. For the sake of keeping the debt forever rank and because we know that if you keep paying them minimum on that that. You are not affirm what feels like forever and and it's late in a question can you afford it you can afford to pay cash for that clouds then. You can't -- financing yet you're likely paying over a 100% more. Eerie it is 800 dollars. As something -- thing over 212 dollars and total by the time you're done. Nowadays and people actually like 29%. It's even more than men and then -- the I really think about am I financing and I know we talked well about what happens when you in the minimum. And you realize that something is little like 3000 -- how much interest you can really be paying apple about that."

" Though I mean thing I have to overreact if you don't mind and I don't think. I was doing a pregnancy. You. Ethnic. Group and it doesn't matter. -- in the second and the educated people from another country that -- working here in the United States however English and we're going through this example of how bad it is pay me minimum payment. And we're talking about. You know 3000 dollar example. And have. -- tiny -- acting but we're talking about how bad -- can beat me minimum payments. -- the cut as an educated people they started bouncing. Off the lot now I'm thinking that only something in a blueprint. You know what did I am not unlike what is going on people are going but again I can't see Dell and they started talking and -- went to each other but a lot of speaking and -- that. And make what was going on this one element was asking us the other people in the room. If they knew they could pay more than him. So what when he was getting -- every month he would -- And he would educated he had the money. He would see the team you know minimum payment at the pac ten years he cat sneaking. -- that and and so when they aren't in their country they don't have to credit credit cards you know I -- that I'm. I think our money maybe from amount they pay them back he didn't know he could -- then -- And so it's everybody watch today yes he can -- more in the minute we encourage you to paint -- up. And -- if it's an important and you if you -- and in the com I keep popularly kids in college credit card ACP. You know that they -- that -- pay because that's what happened for so it's not problem and we think that people are paying the minimum payment of and shell estimated ten active credit card is me and so most of the -- at some point in life but it's it's financially atrocious let's take the let's say had 3000 dollar. 3000 dollars on your credit card and let it into street is about 21 for now that's -- Average into it is just about fourteen. To 21%. Land credit me I'm settled probably yeah that's night that well it cannot be. Money thirty. Mary -- right yeah so that's something in between it's not quite your average average even before a lot of this. Increasing -- that we're seeing right now Harry Truman 14% that lamp and a great frank our example and they actually talked to is people Mac and Bankrate dot com. I go to the credit -- back later run it for the Democrat and we're gonna give an example today so powerful it's I think it. Funny how does doesn't that -- to make a laughing matter to anyone for that NCAA you're making the minimum payment. That it hasn't by the credit card company at about 2% the balance that and now let's say you meet minimum payments but lifetime of -- Now how long would it take you to pay it back how much interest. Well -- and happy that -- in the 3000 dollars that you -- you have to pay that back -- gonna pay approximately 14000 dollars. Let's say it -- get a class and eat at 3000 you put it on the credit card. You're gonna pay fourteen plus 317000. Dollar -- plasma -- where you could it. Three house where someone now 83000 unit at. And you're gonna -- credit card payments. And every single month and it turns out to be 65 years and one. That's how the credit card company who we have we love. About the ability to have access to credit however if you paid them campaign. You can't be -- payment of fifty years and one month -- one -- screen TV. And it cost you. 14000 dollars."

" And and and it went on TV I. TV a lot -- like seven years if it got it right even if I'm not count on however it is -- in that thing. Hughes is three. Well it time that -- to come with three out. They even have like thirty then I'll put up by. Yeah like 440000. Dollars and -- that. Year 55 here here and the other point about it and now that the minimum -- is isolated -- You're using ethnic percent and anywhere from -- rate -- also means that as he paid down. You're minimum he says that he crease and the impact of that is that it's really going to extend how. How you're gonna have that that. It's an interesting thing when you view. Democratic -- and you see. Okay with 3000 well the last thousand for the last twenty years. Right and it's so important to realize that you want to aggressively and a clear that. We had a show on the evening anchors there -- for a look at how you need an extra money. -- Finances we cover and that iron. You know how how is that going to be possible -- some people feel like they're so in the status -- that they can see out of it -- He creating wind comes -- that and that people are feeling like okay how is that car. I know I wanna -- Things that was then this has now been taken from a science and -- One option that they can view and there a debt management plan that. Right and what I appreciate about organization is that you iron them. And that their own any opportunities that people are now which can."

" Torre on -- I I pulled a couple that. -- a client of mine have gotten that sounds so official. Under the national debt initiative program individuals who you know that that got it sounds like it's coming the government and then you read in the tiny fine print where the light. Point five -- or something I mean and we had. Everybody they. But. You noted that Bennett says this method is brought to you by. And there's so much and then there's this other one that looks like it's almost like a credit card offers something outside and that is another one not alone not credit counseling -- bankruptcy. Thought that without. So we can talk about. One how to people that they permit without one of the questions need be asking that it's important. And then -- talk about how -- that -- the latter. -- Because Catholic. So relevant."

" It hit and and I can I ask you I don't of these offers specifically but there are predatory offers that we get every day. And we have we we combat that with -- office even has not credit counseling. And that part of the problem is credit counting on a bad -- and I don't really know it making I think there's many players in the pot and some -- for some legitimate credit counseling agencies are for profit. We aren't the largest and -- one of the oldest in the country and around for about fifty years we go I mean consumer credit counseling -- New England -- beat me here in the -- area. And also go back parent company of Money Management International. He could see those names into heatedly. Throughout the United States. We are nonprofit organization. And so are these are regulated by the eight. So when you're dealing with a for profit organization making it very legitimate company that you could go through that -- and with that. However -- They could have. You know higher heat of the same type are. You have to shop around when you're gonna deal with -- for your finances. Are critical of me."