Brought to you by Michigan’s Assistive
Technology Program at MDRC.
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Use the chat function on the right
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 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”.
 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.

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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 They
have research to back it up
• 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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 Find
a 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
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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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 Late
payments
 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
•
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companies get around it
Promoting business credit cards
for consumers
 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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 Opt
out 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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