Using Credit Wisely: Identifying
Issues & Setting Limits
Prepared by:
Sissy R Osteen, Ph.D., CFP®
If you Answered “Yes” to:
1-2 questions: You may be developing financial
problems.
 3-5 questions: You are on the edge of Financial
disaster.
 5-10 questions: You are in over your head.

Your Financial Situation
Income
Debt
Expenses
Determining Income
Income Source
Salary
Tips
Soc. Sec.
Retirement
Child Support
TANF
Student Loans
Tax Refunds
Other
Weekly
Bi-Weekly Month
Yearly
Total
Determining Expenses
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Housing
Food
Clothing
Transportation
Childcare
Medical
School Expenses
Entertainment
Personal Items
Reserve Savings*
Miscellaneous
Occasional Expenses
Past 12 Months
Home Repairs
$
School Expenses
Car Maintenance
Car Insurance
Medical Expenses
Clothing
Gifts
Vacations
Property Taxes
Total
$
Reserve Account
 Having
some means
Financial Freedom
 Having none means
Catching Up and More Debt
Defining Your Debt
Lender
Car Loan
Credit Cards
Bills
Loans
Monthly
Payment
Balance
Is there a Debt Problem?
Income minus Expenses
= Amount Available for Paying Debts.
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=
Sometimes looks like this
-
=
Or this
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=
Debt/Income Ratio
Monthly Debt
Monthly Income
Debt/Income Ratio
15% or Less Usually Not a Problem
15-20% Plan Carefully
20-35% Cut Back!
Over 35% Seek Help!
What To Do If You Need Help
 Stop
using your credit cards.
 If you have money, contact your creditors
and ask for lowered payments.
 If you have been threatened with legal
action, contact a lawyer.
Questions