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The Credit Card Trap

The Credit Card Trap. That’s $3,863 in interest !. Individual Development Accounts - Federal. What are IDAs? Matched savings accounts Save for education, homeownership, or starting a business Accountholders typically receive financial education and counseling

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The Credit Card Trap

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  1. The Credit Card Trap That’s $3,863 in interest !

  2. Individual Development Accounts - Federal • What are IDAs? • Matched savings accounts • Save for education, homeownership, or starting a business • Accountholders typically receive financial education and counseling • Who Qualifies for an Individual Development Account? • Earned income • 200% of poverty level • Other requirements

  3. CFII and GCDD are working on options to protect benefits for those who will be able to take advantage of the state- IDA IDAs and Public Benefits

  4. Plan for Achieving Self-Support (PASS) Purpose: Assist SSI recipients in obtaining items, services, or skills for employment needs Requirements: Written plan Vocational goal Reasonable time frame for meeting a vocational goal Explanation of the necessary expenses Advantages: Work and receive SSI Save and Build assets for employment goals

  5. Homeownership Incentives • Section 8 Voucher • FHA Mortgage, 3.5% down payment • First Time Buyer Programs (FHA) • VA Mortgage, 0% down payment • Gifts

  6. Planning, Plotting, and Scheming • Frank’s monthly income • SSI: $694 • Earned Income (EI): $585

  7. Maximizing Income and Savings

  8. One year later…

  9. Why a dollar matters… Over 40 years $1 = $446 At 10% interest

  10. What Your Savings Can Do for You $325,000 Long term leveraged investment return.

  11. 3% over 30 years What Your IDA Can Do for You $492,000 Long term leveraged investment return $200,000

  12. Putting It All Together $325,000 +$492,000 $817,000

  13. Tom Foley World Institute on Disability www.wid.org tom@wid.org equity@wid.org For More Information

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