In this informative webinar from financial education speaker Shay Olivarria, you'll discover the two most important strategies to pay down debt, how the CARD Act helps you pay down debt faster than ever before and how to make your credit card work for you!

1. Paying Off Holiday Debt
Shay Olivarria
Financial Education Speaker & Author
Bigger Than Your Block

2. What We’ll Cover:
• What credit is
• Credit card myths
• The two most important strategies to pay
down debt
• How the CARD Act helps you pay down
debt faster than ever before
• How to make your credit card work for you
Shay Olivarria
Bigger Than Your Block

3. Who is Shay Olivarria?
• Started Bigger Than Your Block in 2007
• Has written 3 books on personal finance
• Speaks about personal finance at schools,
non-profits and businesses
• Has traveled to 9 countries on 3
continents
Shay Olivarria
Bigger Than Your Block

4. What Credit Is
There are 3 major credit bureaus in the US. Each one of them has a report and
score for you. Those 3 reports and scores may not be the same.
Experian
TransUnion
Equifax
A credit score and a credit report are two different things.
www.AnnualCreditReport.com
Reports are free. Scores are NOT free.
Shay Olivarria
Bigger Than Your Block

5. What Credit Is
Have you paid your bills on
time in the past?
How much credit have you
used vs. how much credit do
you have available?
How long have you used
credit?
How often have you applied
for new credit?
Do you have revolving or
installment payments?
Shay Olivarria
Bigger Than Your Block

6. Credit Myths
• Checking your credit reports/scores lowers
No. Giving permission for potential lenders to
your credit scores check your reports/scores lowers your scores.
• Using a company to settle debts is always
Nope. Not every lender wants to deal with a middleperson and not all
best companies are the same. Use a non-profit credit counseling organization if you
must.
• Paying off debts will remove it from my
report
that the debt has
credit history Yourmentionwill notedebt will remain. been paid off.
The
of the
• Debts like library fines and parking tickets
is a section
don’t count Thereof debts. of the credit report explicitly for these
kinds
Shay Olivarria
Bigger Than Your Block

7. Debt Payment Strategies
• Smallest Debt
– List all debts
– Pay smallest debt off first
– Pay next smallest
• Largest Interest Rate
– List all debts
– Pay debt with highest interest rate first
– Pay debt with next highest interest rate
Shay Olivarria
Bigger Than Your Block

8. How the CARD Act Helps
• Decline is back – no over-limit charges unless you agree
• More than minimum – goes to highest interest rate
debt
• Anchored dates – no more “floating due dates”
• Snazzy statements – how long it will take you to finish
paying
• Under 21 – may not have a card
Shay Olivarria
Bigger Than Your Block

9. Credit Cards As a Tool
• Build credit – don’t use more than 30%
• Earn points – pay off balance every month and spend the
rewards
• Manage spending plan –
keep all spending in one
place, if you pay off balance every month
• Provides safety – provides insurance against scams
Shay Olivarria
Bigger Than Your Block

10. Tips - Overspending
•
•
•
•
•
•
•
•
Make a realistic spending plan
Take information off line
Put everything in your cart
ROI sales
Stick to a list
Keep a Post-It Note on your card(s)
Use the envelope system
Leave the card(s) at home
Shay Olivarria
Bigger Than Your Block

11. Tips – Getting Loved Ones on Board
•
•
•
•
•
•
Have “the talk”
Agree on parameters
Give everyone a job
Post goals where everyone can see them
Talk about progress
Reward yourselves
Shay Olivarria
Bigger Than Your Block

12. Where to Turn for Help
• The Consumer Financial Protection
Bureau http://www.consumerfinance.gov/
• Federal Fair Trade Commission
http://www.ftc.gov/
• National Foundation for Credit Counseling
https://www.nfcc.org/
Shay Olivarria
Bigger Than Your Block

13. Where to Turn for Help cont ..
• How to choose a credit counselor
http://www.consumer.ftc.gov/articles/0153choosing-credit-counselor
• Approved credit counselors by state and
language
http://www.justice.gov/ust/eo/bapcpa/ccde/
cc_approved.htm
Shay Olivarria
Bigger Than Your Block

14. Questions?
Shay Olivarria
Bigger Than Your Block

15. Thank You Gifts
•
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•
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Shay Olivarria
Bigger Than Your Block