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Oh Yes You Can Borrow Points

Oh Yes You Can Borrow Points. You WORK HARDER for the SAME STUFF. Gotta Get Some Points??? Why borrow? Magic Mountain-leaving now… Xbox? Chips soda hot dog…. Don’t Do It. 3. Borrow to go to Magic Mountain 1,500 points Pay on time -- One year later

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Oh Yes You Can Borrow Points

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  1. Oh Yes You CanBorrow Points You WORK HARDER for the SAME STUFF

  2. Gotta Get Some Points??? Why borrow? Magic Mountain-leaving now… Xbox? Chips soda hot dog… Don’t Do It 3

  3. Borrow to go to Magic Mountain 1,500 points Pay on time -- One year later You Pay Bresee 121 points in interest Still owe 974 points loaned You Work Harder for Your Stuff 4

  4. With the 121 points? Work less? Food Fun Save What Else Could You Have Done?

  5. You Borrow You Pay 3 Yrs. 5 Yrs. 10 Yrs. $1,000 $1,772 $2,594 $6,727 $5,000 $8,858 $12,969 $33,637 $10,000 $17,716 $25,937 $67,275 Cost of Borrowed Stuff

  6. Gotta Get Cash --- FOR WHAT? Car??? Fun??? Food??? Shelter???

  7. Ssshhhhhh Rules for When to Borrow There are no rules You decide – get now pay more later? Save and pay cash – spend less later?

  8. OK one rule…. Buy stuff that goes up BuyStuff That Goes Up House? Stock? Antique car?

  9. You put up half $250 Borrow half $250 Pay interest You Borrow to Get the Goods.. $500 for SIGNED Collector Edition - Snoop Doggy Dog’s Masterpiece - $ 50

  10. Two Years Later… You get $1,500 You paid $ 500 Wooo --- not bad You Make 200% $1,000 Snoop’s Goods Go Up.. You Sell

  11. But Wait – You Have to Repay the Loan You Got $1,500 Pay Back Loan $250 Paid Interest $50 You Pocket$1,200 Pay Back Time

  12. You Make Money on Other People’s Money… You paid $250 (plus $50 interest) You made $1,200 Borrowing gives you an extra $200 You Make More

  13. You made money on borrowed money… How Did You Make More? go up… But only when things

  14. You NEED a NEW Ford Expedition Dealer charges $40,000 You Borrow $30,000 You Pay Bank $6,000 Interest Borrow for Car ??????

  15. Dealer will give you$17,000 Whoa - You paid $40,000 Two Years Later You WANT a NEW Car YOU LOSE$23,000

  16. You paid interest $6,000 You still owe $21,000 Your Expedition is worth $17,000 Pay the banker$4,000just to sell the car You LOSE Again You borrowed $30,000

  17. Depreciate…. Or Appreciate…. OK to borrow to make money…. When to Borrow????

  18. OK to borrow to get to great new job? You NEED a Car… TRADEOFFS…And CHOICES… •Big car little car.. •New car older car… How much interest do you want to pay?

  19. $20,000 Pay interest of $3,000 per year??? $50,000 Pay interest of $3,000 per year??? $1 million Pay interest of $3,000 per year??? JOB Pays…

  20. Credit cards 20% Auto loan 10% House mortgage 7% Ways to Borrow…

  21. CREDIT CARDS20% NO!! CAR LOAN10% Yes - but the price goes down HOUSE LOAN7% Yes - but the price goes up They Can Take the Stuff Away…

  22. Not wise choices: Credit Cards • Clothes • Eating Out • Movies

  23. Wise Choices: Credit Cards Car Rental Buying Online Tracking Expenditures Loss Limited to $50 if Stolen

  24. If use a credit card – only do if you can pay off every month. Wise Choices

  25. $2,000 with 20% interest 2% minimum payment = 265 Months 22Years =$4,800 Interest 4% every month = 88 months 7 years = $1,120 Interest Pay More Each Month!!!!

  26. Are You Good for It? So You Want to Borrow Points

  27. 1) Attendance- homework lab or computer lab min. 1 hour per week plus one regular weekly activity 2) Grades- min. 2.0 grade point average 3) Point History- min. 50 points week 4) Behavior- no more than 2 suspensions at the youth center within past 3 months BRESEE BORROWING BASICS 28

  28. Good credit = 1500 maximum at lower interest Medium credit = 1000 maximum at more interest Bad credit = 500 maximum at YIKES!!! Bresee Lending Standards

  29. 30 days after you borrow points, every time you deposit a check at the bank 25% will automatically go towards your credit account  Payback PLUS INTEREST

  30. 35%-- your payment history 30%-- your outstanding debt 15%-- length of time you've had credit 10%-- number of inquiries on your report 10%-- types of credit you have Tracking Your Credit

  31. 300score --- Bad Credit ??–No Apartment!! No Job!! Pay big costs 900score --- Bankers run after you to lend you money

  32. You pay more for $10,000 loan RatePay to Bank Good credit 5.5% $13,100 Medium credit 7.5% $14,500 Bad credit 9.5% $16,000 Not Trustworthy?

  33. Do you want to: Pay $3,100 Pay $4,500 Pay $6,000 Stand in Good Credit Anything else you could think to spend that money on? Of course your banker loves you…

  34. • Payroll loans • Tax refund loans • Loan sharks • Leasing v buying • Predatory home equity loans SCAMS to Get Your Money

  35. TRADEOFFS and CHOICES less Spend than you make Borrow borrow 1 cheap smart 2

  36. SAVINGMONEY!! Pay Yourself First Next Class

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