A Beginners Guide To Paying Off Your Credit Card Debt | Sherique Dill | Skillshare

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A Beginners Guide To Paying Off Your Credit Card Debt

teacher avatar Sherique Dill, Personal Growth and Development Trainer

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

12 Lessons (1h 29m)
    • 1. Introduction

    • 2. Credit Card Debt

    • 3. Credit card payoff calculator

    • 4. Compound Interest Vs Simple Interest

    • 5. Monthly Loan Calculator

    • 6. Message from the Instructor

    • 7. Credit Card Action Plan

    • 8. Debt Snowball Calculator Live Example

    • 9. Bank Fees

    • 10. Credit Cards Vs Debit Card

    • 11. Setting up an Emergency Fund

    • 12. FICO Score Estimator Live Example

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About This Class

This class is for those who are interested in paying off their credit card debt and seeking to improve their personal finance skills.  This credit card debt class will teach you the important skills you need to pay off your credit card in a timely manner to avoid the web of interest payments.  It gives you the resources you need to be able to practice to become excellent in reducing and managing your debt. 

You will learn the dangers of making minimum payments, and how things such as late fees, take more money out of your pocket.  If you know about these tactics you can avoid them.  

Learning Outcomes

By the end of this class, you will be able to:

  • Develop a plan to pay off your credit card 
  • Use interest and loan calculators to determine your financial risk before you take on loans
  • List and discuss bank fees
  • State the difference between credit cards and debit cards and know which one is better to use
  • Confidently discuss the difference between compound interest and simple interest

Meet Your Teacher

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Sherique Dill

Personal Growth and Development Trainer


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1. Introduction: Hello, welcome to my class on credit card debt. I chose to put this class together because of my own personal experience with credit card debt. I don't want you to experience that. And that is why this exist. I had a credit card where a medium limit that cost me thousands and thousands of dollars because I lacked the strategies that I'm teaching you here in this class today. So in this class you are learning strategies, you will learn and strategies that will help you to overcome your credit card debt. Learn about whether you should use your debit card or credit card. Simply put, when you use your credit card, you are putting yourself in debt. You are borrowing money from the bank. When you are using your debit card, you are using your own funds. And so in this class, you will getting a credit card action plan. So you will learn how to put your plan together so that you can overcome there. I am also talking about making minimum payments and wide cannot afford the Jess made minimum payments because give u du is going to take you on a much longer time to pay off your credit card debt because the interests is compounding every month. So these are the things that you will be learning in this class. Tons of tips I'm giving you that assure to help you to grow and develop and become better when it comes to your personal finances, This class is very valuable and I know that you can benefit from it. So this class targets those who are credit card uses and if you have loans that you want to get rid of. Also, please take note that these strategies you can also use if you have a Manoj because the loan calculators that I'm showing you, you can use those same calculated, calculate your logins. And so you will know ahead of time whether you should engage in that load. So that's why this course is extremely important and it can benefit you if you fall into any of these categories. Now that you know with his amazing cost is about, now we get to the part about me. My name is Shou week till I am a personal finance coach that loves to talk about money and wealth. I am from the Bahamas, the place of the sun, sand and see. And so I am so glad that you are checking out my Cause. I hope that you come on in and learn all that you can. I hope that you grow and develop and be the best that you can be. I hope that this course allows you to make changes in your life in regards to your finances. So before we get started on this amazing cause, I watch you follow me here on this platform. Also, please leave a review of this course. Let me know what you think, which changes that I can make if there is any. So let's get started on this amazing cause and I will see you on the inside. Thank you. 2. Credit Card Debt: Hello, welcome to my class on credit card debt. This is the introduction to this most amazing and valuable cause. And so what are you learning here in this lesson today, you were learning the truth about credit card debt. How it is costing you tons and tons of interest. I don't know about you, but I know that I had a credit card that caused me so much more than I actually bought because I didn't have the strategies that I am teaching you here in this class today. And so I had to pay by paying a lot of interests because I didn't follow the strategy. So that is why this lesson is crucial, because it gives you a better understanding of how credit cards work so that you can manage your data efficiently and effectively and you can get the most out of your money. So credit card debt is a debt incurred by using a credit card issued by a bank or financial institution. And of course, you know, it includes credit. It is a loan from the quality cars are unsecured loans, so they carry the highest interest rates. Unsecured means that there is no asset backing your tab. Most carried an annual interest rate or an annual percentage rate, which is listed as APR, of about 18 to 21%. An insanely high rate that you are paying every year on this credit card. For example, a car loan is a secured loan. If you don't make payments, the Bible repo the car. So the interest rate on these types of loans are lower. And the same is for among edge. If you are unable to pay your mortgage, Of course, the bank will come and take the house away from you. So it is an asset. So that is why those types of loons are lower when it comes to interests. Quite a cards are tied to its own account and not your bank account. What are the different types of credit cards you have? Unsecured credit cards, reward credit cards, student credit cards charge credit cards, retail credit cards, secured credit cards, and subprime credit card. So these are some types of credit cards. The majority or the reason why credit card companies exist is to make money. This is the majority of the reason why they exist. They will try to offer you all kind of books to lure you into getting their credit card or to keep it for a longer time. For example. Offer you rewards such as cashback when you spend on your credit card, points are miles for travel. There will also increase your credit card limit. I remember when I had my credit card, it was a particular limit. And after about two years, I would have gotten a letter from the bank telling me that they are increasing my credit card limit without even asking me, they just increased it because they saw that they were making money for me and so they increase my credit card limit. It was good for them but, you know, not good for me because I was not doing what I should've done because I didn't not the strategies that I'm teaching you here today. And also you will get returned protection, free credit scores, sign-up bonuses, purchase or protection rather on purchases, Kangxi odd services, and so much more. So the Bible find all kind of ways that they can lower you into getting their credit card. Because they know that most people, Paul, when it comes to paint there and they know that they're going to make the interests, okay? So people rush for credit cards because they are convenient. You don't have to travel with cash on you. They are good options for online purchases. Another good reason is the funds are easily assessable. Clara COD also gives you access to money that does not belong to you. It's other people's money. I think that is the biggest reason why many people rush for credit cards. They love the idea of using other people's money and having to pay it back at a later date. So credit card usage is revolving debt. I need you to understand this. It is a revolving debt. If you do not have financial discipline, the more credit you use, the more money you owe, and the more money you pay back on the credit card, the more money you have available to spend. Again, this is why they call it the billing cycle. It is one huge cycle of debt. And so you spend money at the ducks away from your credit limit. You put that money back there and so you have more. So it's a revolving debt. The way it is design is to keep you trapped in this web of them. Well, here's an example I wanted to give you is called invest or payoff damp. Many people make this mistake. Harrah's example, if you have $500 in your possession, what would you do with it? What would you put a savings account to? You, owe your credit card company 1 $1000 and you're being charged 20% annually and interests. So you would place that $500 on your credit card loan. Or three, Would you invest that $500 into the stock market? Chosen number two with the best option, you should pay off your high interest DEP for, for investing. Number one is not a good option due to inflation. Your money is just sitting in the bank getting little returned. And so the best thing to do is take your extra funds or that you can't put it onto your debt, especially your credit card debt, because it is, in seeing the interest rate is insane and is taking so long to pay off that loan. So things to remember, credit cards carry a high interest rate. Every time you use them, you're boring when he had a high costs. And you must remember that the more money you spend, the more money you owe. Here is a Hudson. Don't spend money on your credit card that you can't afford to pay off info. And the next billing cycle, you must exercise, discipline. This is how people get into a lot of trouble. People fall into the trap of paying less than they owe. Why would you go into a store, purchase a TV for a $1000 on, you know, at the end of the month, you do not have the $1000 to put back onto that credit card. This is how you are getting yourself into trouble to not charge the car for things that you cannot afford to pay back in full. So coming up in the next lesson, we will discuss live examples of how credit card interest rate keep you in a web of debt. This lesson is going to be so exciting because I'm going into calculators and I'm showing you exactly how depth is being piled up upon you. You need to understand this cycle, how the bank is winning, winning. So you don't want to miss this valuable lesson. 3. Credit card payoff calculator: Okay, so in this lesson we want to look at this calculator here. I will put these calculators for resources right here in this platform. So you'll be able to find all of these calculators and you can use them as you need to use them. So let's go ahead and start off with this first credit card debt here. Okay? So credit card number one, credit card balance on this car is going to be $5 thousand, okay? And the annual percentage rate, the credit card rate is 18.9% annually, right? The minimum payment percent is four. We're gonna go with 4%. So that plays us at a monthly payment of $200, ok, so $200 a month. And if we put $200 a month on this credit card balance of $5 thousand, it is going to take you 137 months to pay off this credit card balance, okay? So please keep in mind what this tone here and with the interests and the tone charges and everything is only effective if you're not adding on to the credit card balance. If you are continually using the card and you are continuously adding expenses to the card, then of course, it's going to cause you a much longer time to pay it all. So let's say that your credit card balance is 5 thousand and you're not putting any extra charges on this card? This would be accurate. Okay. So the monthly payment of 200, look at how much time is going to cause you a 137 months to pay off this credit card, okay? And the total payments on that is going to be $8,109.16. So when you would've done paying for this credit card, that is what you will pay on this card. So let's, let's go ahead and increase this minimum payment percentage. Let's say we decide, hey, we're gonna pay more on credit card. And so we're going to change that minimum payment or at least 7%. Let's see where it will take us. Okay? And so the monthly payment would have increased a $350. Okay. And it cuts payoff time to just 72 months and the total payments on this will be $6,419.75. That would be with the credit card balance plus the interests. Okay. So significantly your payment has been reduced. Okay, let's look at credit card number two. So your credit card balance here is $3 thousand credit card rate of, let's change this rate to 21% because summaries percentages are some binds rechargeable 20 to 21% per annum on these cards. And so. The credit card away here is 21%. Let's say you going to present you don't want to, you don't want to pay the buying 4%. So you reduce that minimum payment to 2%. And so that means on a $3 thousand credit card balance, if you're only making $60 a month. Ok. It is saying that job balanced payoff is 30 plus years and your tunnel payments would be $15,514.56. Wow, I can't believe that this amine really is. Do you understand this? Look at this on a $3 thousand credit card balance, look at how much money you are losing if you decide to choose the lower the lower minimum payment of just $60 a month. Oh, that is so crazy. I'm telling you this is how the bank is becoming wealthy. And so you're a paid them $15,514.56 on a credit card balance is $3 thousand to meet us. I mean, that is ridiculous. Ok, so we cannot afford to do that. Increases 2% the elif, 5% minimum payments. So we would have quizzed $60 a month to $150 a month. Okay, so that place us at 94 months. So it will take us 94 months to pay off this balance on a $3 thousand credit card, okay? And so the total payments would be the 3 thousand plus interests, which would put us to $4,526.32. Look at the difference. This is what I want you to see here in this class today. Look at the difference of just increasing your minimum payment and attacking your credit card with vengeance when it comes to your payments, especially if you're not able to pay it off and fall, then you definitely need a hub, a good strategy when it comes to paying off your credit card. So this is amazing and so I would advise you to use these calculators to keep you on point with your loans. Okay, let's do one more before we go. Let's say you have a credit card balance of some people have some big limits on their credit cards. Alright, I say $10 thousand. Let's put this 19, 19% percent, ok, and the minimum payment on this, we want to increase this about 7%. Okay? And so, okay, that will place you at making $700 a month payment on this $10 thousand car, okay? And so it's gonna take you 85 months to pay that off. And the interest rate was principal would be $12,890.99. Now if you decide to be cheap and you decide to make let your minimum payment only be $300. Wow, would you look at that is going to cost you in the long run, $20,834.16 and it's going to take you to a 157 months to pay off that car. 4. Compound Interest Vs Simple Interest: Compound interests versus simple interests. In this lesson, you will learn what is compound interest and how it keeps you in the cycle of debt when a simple interests and why it is better if you are borrowing money. Also, you will see calculation methods on simple interests. This lesson is important to credit card debt because it shows you how the bank is using this strategy bill there. Well, you can avoid becoming a victim by understanding the power of compound interest. You can also use it to build belt for yourself. So if you are a person that has ambition in regards to generational, Well, this is extremely important because this is how you do it. You have to be able to allow your money to work for you. And this is what investors do. They allow their money to make money for them. And compound interests is one of the ways they do this. Bias would not be successful as they are today. If they didn't charge interests, no lender would be able to increase wealth as fast as they do without interests. Einstein called compound interests the eighth wonder of the world. Warren Buffett attributes a lot of his success to it. So as a matter of fact, I don't know if there are any investors that don't know about compound interests. Any self-made millionaire that don't practice this strategy. So compound interests is extremely important and it's something Muslin and go deeper into the power of it. The banks weren't you to only make minimum payments so that they can charge you more interests and keep making money off of you. When you make minimum payments. The loan is going to last for a longer time. And so this is what gives the buyer the ability to keep charging you interests and becoming wealthy from it. When you're only making minimum payments, you are falling into their trap. You are doing exactly what they have predicted because they have already calculated the years. It's going to take for you to pay off your credit card debt. For example, ten years. If you only make $60 a month payment, they would have already calculated that is going to cost you about ten years to pay that off if you have a $5 thousand credit card balance, right? So they know exactly what they are going to make of you. And so they are hoping that you stay with the minimum payment method. So do not fall for that trap. What is compound interest? It is the addition of interest to the principal sum of a loan or deposit. In other words, or simply put, it is interests on interests. So which alone the bank is earning interests within each period of the principle, some pilaster previous accumulated interests. Why is compound interest so powerful? I will tell you why. It is powerful because it makes a sum of money grow at a faster rate than simple inches. Because in addition to earning returns and the money you invest, you also earn returns on those returns are the end of every compounding period. This could be daily, monthly, quarterly, or annually. The shorter the compounding term, the more interests the investor. And in this case, the bank. For example, daily compounding earns more than monthly compounding. And so you want to be on top of your game when it comes to that, you want to know how frequently is Yellowstone or your interests rate compounding. Simple is paid only on the principal at the end of the period. Difference with compound interests is interests is charged every month as the parlance draws down. So this is the main difference between the two. I'll show you an example. The interest rate for a particular loan is 3.875% per year. The period on this loan is five years and the principal is $10 thousand. So this is the calculation to calculate this simple interests. It will be 3.875% times $10 thousand. That would be $387.50 per year. And so you times $387.50 by five years because that's the term for the loan. And it gives you $1937.50. Very simple. And it is not costing you a lot of money. Compound interest doesn't work this way. And in the next lesson you will see how it works, how it compounds, okay, so here are things to remember. Compound interests is the lender's super weapon. It is very detrimental to the borrower. London institutions want you to only make minimum payments so they can charge you more interests. You must remember that important tip. Also. You must remember that simple interest is best for the borrower. So if you have the opportunity to choose between alone that offers simple interests and one that offers compound interests. The best one as a borrow up would be the loan that we're only charge you simple interest because you are saving more money. Here has a hot tip that I want to leave with you. The next time you get alone, check out the facts in regards to interests. Will you be charged interests daily, monthly, or yearly? Also, is its simple interest or compound interest. These are things that you need to know, choose alone that doesn't charge penalties for paying it off earning. So yes, there are some binds that will charge you a penalty if you pay off your credit card debt early or your loan early. So you want to choose one that doesn't charge you because they're buying. They want to make off of you what they predicted. And so when you come into their establishment and you pay off your principal amount early, and this interferes with their plan. And so there are some of them that are going to say, hey, we're going to charge a penalty for the API because we don't want them to pay the loan off early. We want to make as much interests from them as possible. And so you want to avoid these types of financial institutions and banks. So that is it for compound interests. In the next lesson, I'm going to take you live with some examples on how it works. And then after that, we will go into credit card action plan, that DAP reduction strategies. So stay tuned for that. You do not want to miss that. 5. Monthly Loan Calculator: In this lesson, we are looking at this monthly loan calculator. Okay, so the illustration that I'm using today has a principal right here of $15 thousand and the time limit, or this is 48 months, the interest rate on this is going to be 6.25%. And so that leaves us with a payment of $354 every month. So that's what you're going to be paying on this loan. Okay? And so again, the monthly payment, 350 for this loan for 48 months with an interest rate of 6.25%, It's going to cost us one hundred and nine hundred and ninety one dollars and eighty seven cents total interests. So let's look at month one. So the interest paid in month one is $78.13. Now, as you look at this schedule, you'll notice that the first month is when you will pay the highest amount of interests. Because remember you are paying as the balanced draw down. So your highest months we'll be writing these first months here. As you can see, as it gets into my 234, the interest payments goes down. And so the principal pay on the loan $275.87. This is coming out of this payment of $354 as are the remaining balance is $14,724.13. And so if we look at month four, we will see that the interests, the interests paid me pull up this thing here, okay, the interest paid is $73.79. That leaves us with an interest tone of $303.85. So n month four, we would have already paid the bank $303.85 thousand in interest alone. The principal tone for this month would be $280.21. Now, as you can see here, as the interests decreases, the principal amount increases C here and mark one of us to 75. Now if we look here at 14, it is $0.221. And so the total would be 1.140000, $0.$112. And so there were many balance in Month 4.88, $0.$13,887. Let's look at MAD Fanny. And month 20, the interest paid goes down to $49.51. So we would have paid already to the buying one hundred, two hundred and eighty dollars and seventy eight cents. The principal paid now increases to a whopping $304.49. So at this time, now more money is being applied to your principle. And so this is the amount you would have paid already for the principal in my $25,799.17, the remaining balance $9,200.83. So this chart shows you exactly how the money is being compounded each month, okay? Every Mano, this remaining balance, this total right here, you are paying interests, so you want to make us much principal payments as you possibly can, so that the remaining balance is lower because it determines how much interest is paid and how much principal paid. The less your monthly payment is, the remaining balance is the less you have to pay the bike and interests and the more money goes on your principal. So you can use this chart, this calculator, for any loan that you ha, if you have a mortgage, you can put that right up here and it's going to calculate and let you know exactly how much you are looking at is going to calculate the interest for you so that you can know if that loan is virtual time and if it is worth the money, okay? And you can use it for car payments, whatever you choose to use it for. And so let's let 47th month, the interest is only $3.66. You would pay them already one hundred and nine hundred and ninety dollars and four cents. And the principal increases now to $350.34. Okay. And so the remaining balance here has only $352.16. And so admin 48, you would have paid a total of $1991.87. Okay. And that would be a complete loan payment here for $15 thousand or you would have cleared your depth with this. 6. Message from the Instructor: If you've made it this far, I want to say congratulations on sticking it out with me. And so I want to encourage you and inspire you to continue on with the other lessons within this course. There is a lot of valuable information here, and I promise you that this course is going to change your life, is going to help you better manage your personal finances and it's going to help you to overcome your credit card debt. So stick it out with me here in this course. If you have an as yet, please go ahead and give me a review. So let's jump back in on the inside of this. See you on the inside. 7. Credit Card Action Plan: Credit card action plan, debt reduction strategies. In this lesson, you will learn to important depth strategies that will help you to clear your tab. So you will learn about the depth snowball method and the DAP avalanche. Also a smart plan that can help you with your financial goals. So let's get started into this amazing lesson. But first let me tell you why this lesson is vital. It is because if you don't have a plan, you won't accomplish your goals. The only way that I was able to become successful with my credit card debt because I had a plan. I knew exactly what I wanted to do. I had a step-by-step plan that showed me exactly what I needed to do in order to overcome my financial debt. So being clear about what I want and why it was important to me was extremely vital in my process of clearing my credit card debt. And so you must have a plan. You must have a plan. You must know how you should structure your plan because it is going to guide you, is going to tell you what to do, what you should not do. So what is adept snowball, adapt? Snowball is paying off your depths with the smallest balance first. For example, your credit card bill at ABC buying is $1500 and your student loan is $2500. Your minimum payment is $100 for your credit card. With debt snowball, you would pay off the credit card depth-first by increasing the minimum payment to $200 while paying the minimum payment on alla depths or other existing loons. As you create your depth. Keep rolling the payments over until you reach the desired amount. Okay, so basically, when you would have cleared off your first goal, you would use that same money that Jews pain on that goal, on that amount and then you put it towards the other one so you would increase the payment. You don't take that, for example, that a $100 and just buy food or say, oh, this extra $100 I house. So I can use this now to splurge or entity myself. No. The same money that she was using the clay off the first loan that you would've done, you take that and added to what she was already pane on the second node. And this is how the depth snowball work. And when the second neuron is payoff, then you take the now increase amount and put it now onto the third known, which would also increase. Okay, so this is how the debt snowball works. Now, after this lesson, I am going to take you live and show you exactly how it works. So what is a depth avalanche? It is different from a debt snowball and I'll tell you how it differs. The depth avalanche is when you pay off your depths in order from the highest interests to the lowest. It is not based on the violence among so you are not paying off based on the amount with the DAP avalanche. Everything is about interests. For example, you have a credit card balance of $30 thousand at 20% interests and a student loan of 35 thousand at 5% interests. The DAP avalanche says, pay off that 30 thousand credit card debt before the student loan debt. People who chose this method, they do because they think that they will save money in the long run by paying off the highest interest rate. And so I choose to work with the depths. Nope. I will tell you why it is a better method. Okay. A, it gives you motivation. As you see, each small depth is being paid off. This success boosts your momentum or your energy to attack more of your dab. The avalanche could take a toll on you because it will take a longer time before you see success that dealt with the higher interest rate can have a larger principle to pay off. So for example, if you choose the pay off your credit card balance of $10 thousand because it has an interest rate of 22%. And you also have a credit card of $1500, but that interest rate is only 10%. So you can see that with the avalanche, you're going to pay off that higher 1 first because of the interest rate, okay? And that is going to cause you a longer time to pay off. B. After several of your smaller bills are paid off, you start to see the light at the end of the tunnel. You see progression. You feel much lighter on your burden is not so heavy. This is another example of why the debt snowball is better. In my view. Seeing this great feeling can be experienced in 18 to 24 months with the debt snowball. With the avalanche, it could take years. And the risk is that you could lose this theme and passion and give up long before you accomplish anything. So the key for the debt snowball is motivation and inspiration. It boosts you and it gives you energy because you are saying that you are doing it. You, you were saying that, hey, I can actually do this. And so you keep at it. And because it is small, because you go with the smaller loans first, you, you, you're using that inspiration and motivation from the smaller one, you using the experience also from the smaller loan to be able now to take you through the larger loans. And so that is why it is better in my view. So let's move on to the debt reduction plan. Here are some key methods you can use to help you Claire off your credit card debt or any loan that you might have. Choose which method is good for you, whether you choose to use the snowball or avalanche. It is definitely up to you. If you want to pay off your debts with the higher interest rates first, then you can go ahead and use the method for that. And if you want some motivation or inspiration to help you get through the other depth, then you can go ahead and choose the Snowball. So it really depends on what you want. And so develop a credit card plan, an action plan step-by-step, so that you can see the things that you need to do, things that work, keep them. The things that do not work in is not helping you to reach your goal, remove them from your plan. Remember that humans be passionate about this. If you don't have the passion and you don't know why you are doing it, it is not going to work. So the first thing you should do is be Pacific, the clay on what you really want to do. And this method that I'm showing you now is the smart method. So the S stands for Pacific, be Claire, or what you really want to do. The n starts for measurable. What is your desired result? What do you wish to accomplish after going through with your goals? The a stands for achievable. How do you plan to achieve this goal? For example, I plan to put $200 a month on my credit card bill at ABC bug. I will achieve this by cutting out some unnecessary expenses. Maybe you don't need to buy that Starbuck coffee that you buy every morning for $10 or you don't go to dinner every weekend. So these are funds that you are saving so that you can achieve your goals. Relevant. R stands for relevant. Why do you want to accomplish this goal? How important is it to you? You must have a purpose for every goal that you set. Because having purpose is going to keep the flame and a fire burning inside of your heart. Okay, so it must be relevant. And the T stands for time bound. Namaste set a goal, but over the time limit, choose a start date and a finish date. For example, I want to accomplish this goal within a month and be completed in one year. Or you can put Pacific dates there. So make sure you obvious start date when you want to start the goal, and when you want to complete the goal. So use specific day such as disembark tenth, 2021. Use dates so that you can stay discipline. Everything is about discipline and staying true to your commitment and to the plants and desires of your heart. Now here's a tip I want to give you. If you lack a good solid income or you don't have enough at the end of the month to help you to pay off your debt much faster. A good way to do it is try to find a part-time job for the extra mile. You can sell things in your house that you do not need. I'm sure there are some things that you can find in your house that isn't necessary, that you can do it out. So you need to do a potty wholesale or backyard sales, something, put them on their attack on try to sell them off. And the money that you get from that, go ahead and just dump it on the depth Claire of those high interest depths. And some more goes there so that you can live a good life. And you have the freedom to do the things that you really want to do. 8. Debt Snowball Calculator Live Example: Hello, hair is a lesson where I want to discuss with you how the debt snowball books. So this is a depth snowball calculator, and I want to show you how this works and how you can use this calculator to help you if you chose the depth snowball method. And so let's look at this here. Let's put in some of our debts that we can have here, right? Credit card, a credit card with balance, let's say we have a credit card with a balance of $5 thousand and the buying charges 19% on that, we are making a payment of $200 minimum payment. And so what the calculator does is it counts, calculates the interests on this loan. And so the interests here would be 1.490000, $0.$415, okay? And it's going to take 33 payments to pay this off. And so let's insert a column here. We purchase a calf, $8 thousand. The bank is charging us 8% on that. And so we are making $300 payment month. And so the interest on that loan would be $838.08. And of course we are going to pay that back with 30 payments. Okay? And so let's put something else here. Say we have a student loan. Student loan, $7 thousand be brought out from the bank and we're paying 6% interest on that. We're making $250 payment on that month. And so the calculator calculates that for you, $560.10, okay, 31 payments. Okay, and so let's say now we want to clear out this depth faster than it's going to cost us. Okay? And so we want to make $300 actual payment of $300 on these loans. And so let's see, we could calculate that here. Let's see, with the snowball is telling us. And so our current loan balance for the three of them would be $20 thousand. So that is our depth, $20 thousand. And thus the three loans together that we would have discussed rate here, okay. And so the payment that we're making on that right now is $750 a month. Okay. The interests that we are being charged on those three loans amongst $2813.67 a month. Okay. And the number of payments lab 33. Okay. And so with the debt snowball, adding the extra $300 to go towards these three loans, the payment would now be $150. So you increasing that 702 $150. And so that will bring the interest rate down on the interest cost down to one hundred and five hundred and ninety nine dollars and seventy nine cents, leaving us with any one payments. Okay? And so the time an interest savings from a celebrated depth payoff would be 100000, $218, an $0.88. This is our savings. Okay. And the number of payments that we canceled off would have been well, oh, wow, that is amazing. Okay, That is amazing. Let's do one more example here. So let's clear that here. Let's say we have a credit card balance of $10 thousand. You are paying an interest rate of 21% on that. We want to be pained by $300 back on that. Here you can see the interest rate is going to be $5,139.62 and it's going to take us 51 payments to pay off that credit card debt. Let's say we have a car probably would have borrowed, and that carbon cost is $15 thousand. The interest rate on that is 8%, and we append above $500 a month on that. Okay? So here you can see the interest costs. 1.89000000, $0.$791 is going to take us 34 payments to pay that off. Now we have another credit card deck here with another bike for $3 thousand. We are paying 18% on that. We are only paying a $150 a month on that. So as you can see, the interest cost on that car would be five, then three forty eight, twenty four months, you're going to put an extra $500 here to pay off that. So let's calculate that here. Okay? And so the current totals is $28 thousand. That is Deb. Okay. $28 thousand. We are making $950 a month payments on those three loons. Okay. That's causing us and interests of $7,525 with 51 months to pay off those three loans. So with the debt snowball totals less here, say here we have 10000450, okay? Bi, increasing this $950 up as o, that would bring us to 10000450. So the interest rate significantly comes down to $3,384.96. And as you can see here, the payment left to pay this off dramatically drops to 22 payments. And so we would have saved $4,140.04, okay. We would have knocked off 29 payments. Okay, So this is awesome. Okay, and this is the depth snowball calculator. I am going to include these hair in the course so that you can use these and calculate your loans. So I hope that you would've enjoyed this lesson. I hope you are enjoying these calculators because these are amazing and it's going to keep you on points. 9. Bank Fees: Hello, hello. We are here to talk about dying fees and charges. First off, before we get started, I just want to say, thank you so much for participating in this class. And I hope that you are excited about the strategies and that you can grow and develop from these amazing tips and strategies that I'm sharing here with you today. So in this class, you will learn about buying fees. Learning about your buying fees will save you a lot of money by avoiding these charges. Now for you, you might say the charges are small, but hey, these are the charges that are causing you a lot of money and it's making the bike rich, okay? And they add significantly to yet there because remember, once the bind go-ahead. And are these fees onto your balance, you are going to pay interests on that balance or done remaining Islands. And so if it's a late fee or whatever it is, you are going to pay interests or not if it is not paid off in full. So let's get into this lesson. Unless see that type of buying fees that the banks are charging you so that you can avoid them the best that you care. And so binds love to take as much money as they can from you. They loved to nickel and dime. Their customers would may feel small to you, like I said, is adding up big box for them is gone. It's gonna cause you in the long run. Okay, so let's get started on these charges. Annual fee. What does an annual fee? An annual fee is a charge for the privilege of having the card. So they are charging you this fee just because you are using the credit card. If you are not using it at all, you still have to pay. These are annual fee once the card is in your possession and it belongs to you and it's current. You are going to pay an annual fee for that car. Late fee. Okay. Late fee is a charge for not paying your minimum monthly payments on time. And so you want to look at your statement or you want to look at the due date, whatever that due date is, you wanna put it there before that, Judy, so that you can avoid the late fees on that. And so balance transfer fee, this is a charge for transferring a balance from one car to the next. A cash advance V. This is a charge for using your credit card to take out cash from an ATM machine. Or the bankteller. Most credit cards have a super high interest rate for cash advances. Many times, cash advances are charged on the spot. That means there is no me grace period. Once you go to the ATM and you put in for a cash withdrawal, they are going to charge you right away on. So immediately you are charged for this cash, our garments. And so sometimes we use these things. We do these things where we don't understand what it is cost. And so this is why this lesson is important that you would know and be aware of how you're spending your money. And so we have the over the limit phi, this is a charge for going over your credit card limits. Okay? Expedited payment fee. It is a charged to expedite your monthly payments for for the due date to avoid late fees. So sometimes you forget about your do your minimum payment is due on the 28th of January, but it's the 2627. And your bio may take about three or four days to post that. And so you need to rush this payment so that you don't miss your due date. So there is a fee that the buying charges you for that it's called an expert dilated payment fee. Then you have the foreign transaction fee. So if you are out of your hometown in a different country, there is a charge for using foreign currency. That's right. It's not free. You have to pay for that, OK, return payment fee. If your credit card company has to send your payment back to you because of insufficient funds or it was the wrong amount. That's a charge on telling you the buyer wants to get as much money from you as they possibly yarn. So you need to be aware of these fees and charges and avoid them. Card replacement fee. If you lose your card or if it was stolen, you will be charged to replace it. If you needed urgently, there was an extra fee to rush it. I remember when I lost my credit card and so I had to go into the bank and put in for replacement card. Okay. They charge you for that. And then I said to the lady that was assisted me. Okay. I really need this card urgently because I have some purchases that I need to make. And so she said Shaw, we can rush it for you, but that's an extra fee. Okay. So you're going to pay for that. That's an extra fee. So here is our blazing hot tip that I want to give you. Okay, check with your bike and enquire on their feeds. Many people are surprised when their charges fees because they're not aware of them. Getting to know the different fees and the amount will help you to make better financial decisions. Now, I didn't mention this for with the late fees, sometimes you can challenge it. Okay. If you have a really good reason why you were late, you can just go into the bank and let them know, put in for a reversal of that late fee. And it's up to the buying to say whether they are going to reverse that, a late fee or not. So you want to enquire which are buying so that you can know what your privileges are and what you can do to avoid some of these buying charges and by feeds. So up next, we are discussing credit card versus the debit card. Should you use a credit card or should you use your debit card? This lesson is going to be so excited and so come on in to the next lesson. Please. Follow me with this next lesson. You are not going to miss this and giving you some great tips on whether you should use your credit card or a debit card. And what is the difference between the two? Both of them are plastics for hey, there is a very significant difference between the. 10. Credit Cards Vs Debit Card: Hello, welcome back to my class. And in this lesson we will discuss credit card versus debit card. Which one should you use? What is the difference between the two? You will find that out here in this lesson today. And so in this class, you will learn the difference between using your credit card versus your debit cards. When you use credit cards, you are using the bank's money. You're putting yourself further into debt. So this is what you need to do. This is the major difference between the two. When you use your debit card, you're using your money and you are not adding a single dollar to your chair. So that is the difference. So simply put, when you use credit cards, your spending other people's money, and you are paying interests on that. When you use debit cards, you get only used the money that's available on your account. Unless you have a checking account that is linked to an overdraft. Okay? And so if you have that type of debit card, then it's going to cause you a few dollars for the overdraft. But both are convenient and can be used if you don't wish to shop with cash, boat up plastic. And the same strategies exist for the two, but the major difference is that one is putting you in depth and one is known. So people often, or people are more often cautious but spending when they know that it is their own money, they understand that when the car is swiped, the money is gone. It is gone off of your account immediately. Okay. So debit cards make you more aware of spending than credit cards because, you know, when you swipe that debit card, that is your hard earned money leaving your account immediately. When you swipe your credit card, you have a month to pay that back. That is the difference. Okay? So with credit cards, you are not responsible because it's not your money and you know that you can pay it back later. So even though it's costing you more with added interests, it just feels to be able to spend other people's money. Remarked that, right? As consumers, we love to be able to spend other people's money. When you use your debit card are the ATM for cash withdrawal. There might be a very small fee, but when you use your credit card, the fee is much higher, okay? The fee for using your credit card at an ATM is in scene. So this is a good difference here between the two. If you intend to make cash withdrawals from the ATM, it is better to use your debit card because that Debit card is connected to your savings account or your checking account. So it's not costing you that much. It is a better option if you want to make cash withdrawals from an AGI. So here is a hot tip. Let me go ahead and move this key armor from off the screen so you can see the words better. So a hot tip that I want to leave with you, cash is always the better option when you're trying to avoid them. Why? Because people hate to see those criss dollar leaving their hands. It hurts to see those criss dollar and leaving your hands. If you don't like traveling, traveling with cash. Debit cards is the next best option. Also for people who are trying to budget uncontrolled as planning, which is exactly what we are trying to do here in this course. A debit card is better, ok, because you are not charging up your card and causing yourself to have to pay back a lot of interests. And so let's discuss security. Now. We credit cards, they do come with a better fraud protection. And I'll explain in here, when your debit card is hit by fraud, that money instantly leaves your account and you have to wait until the bind investigates the model before they hopefully reimburse you. This process can take weeks, it can take months. Wow, listen, I could even take years. Okay. It depends on your bank. And so in the meantime, you were there waiting, waiting, and you don't have access to the funds because the byte gets investigating and they are not going to give you a funds, but until we do a full investigation, add at the end of the day, even after investigation, they might still not give you your money back. So you are at loss. Now with a credit card, it is not your money. While the bike investigates the fraud, you are not liable or you don't have to pay the funds back. Okay? So you have many credit card companies that offer 0 liability coverage because such as Visa and MasterCard, ok. And sometimes all you have to do is yes, if a bears a fraud happening and you discover this, just aware the company, you could also put a freeze on your car. There's so many things you can do as the bank investigates. They don't require you to pay back those firms. Some people even went as far as going into court with the byte. Okay. The bind probably wanted him to pay and they, you know, they had to take them to court. Okay. And so it is a great fraud protection when it comes to credit cards. So that is one thing that I would like to stay between the two. And so you have to choose wisely when it comes to the credit card on your debit card for certain things, you should use a credit card if you have good financial discipline. So this is really what it comes down to. Good financial. Are you able to use the credit card and then paid off? For example, if you travel to a foreign country, the better option would be a credit card because you don't know what's happening in that for you don't know the country you are in a foreign environment. And so to protect yourself against fraud and all of these things that happened when it comes to cards is best to use your credit card for online purchases, like purchasing airline tickets, paying for your hotel, and things like that, you should use your credit card. Ok? So for cash withdrawals, It is better to use your debit card ADS. So you have to know the difference between the two because I'm telling you if you have some money on that debit card and you encounter fraud, you are going to be in some trouble with the bank because they look at it as your money, it's not their money. And so they're gonna take their own time investigating when that man. Also, they're going to try to come up with all kinds of things. Assay, all kind of questions. Are you sure you didn't lend your card, anybody else or you show nobody have the pin number two, this car, they're going to come up with all kinds of excuses so that they are not liable or able to reimburse you for those funds, which your debit card. And so hard TIP, make sure to sign up for online banking to monitor suspicious charges as often as you need to. Okay. I know for myself I have an account with online banking. I check it every few days and as soon as I see a charge on my statement that should not be there. I am investigating, I'm going to call up. I'm going to say what is happening as I am aware, was happening and I can catch things right away. So online by going is amazing. It shows you everything was happening with your account. So if you do not have on I'm begging, you want to sign up for that? Let's discuss rewards. Debit cards don't get rewards like credit cards, but you know what else? They don't get injuries. That's right. This is the big difference here. They don't get rewards, but they don't get interests either. Its end scene, how people spend so much money on their credit cards just to clean rewards. Credit cards, rewards are joke. Okay? They are joke because you're not even getting that much when it comes to rewards, okay, it's a small, tiny amount that you are getting back. But you are using the card so much just because you want those rewards, but when you look at it, you're paying so much more and interests. Okay? So is credit card good option? It is a good option if you're financially discipline and you can pay off the balance in full before you are charged. Interests. Sometimes when emergencies, you can benefit from using other people's money, but not to just be a consumer buying liabilities. And so there's something called good depth bw or getting something that is an investment, an asset that is going to bring money to you and you are able to pay back that loan quickly. Nathalie's gone. You can go ahead and benefit from other people's money and don't my appeal interests on it because that loan is benefiting you and is putting money in your pocket. But if you are charging your credit card for television and follow the new wife food or the new sounds. And all of these things that have no ability to bring money into your pocket. That is not good deck, okay, that is body up. And you should not use your credit card for those type of things. If you have a car with a 5% cash back, you will have to spend a $100 just to get $5, but this is not worth the interests. Okay? And people go crazy over these rewards that are these cashback and these points in these miles that the buying of the financial institutions are giving, you know, they call them the pucks and actual proximal all of these things. But it's not worth it. It's not worth the interests. Look how much you have to spend just to get a measly $5 back from them. Is it worth it? Okay. So a hot tip, this is a blazing hot it. Credit cards used responsibly will help you to boost your credit score. Okay? This is something that debit cards won't do. So this is a major difference between the two. If you are a person that is interested in building your credit score, then the debit card is not going to help you with that. You would need some type of credit to boost your credit score, okay? But I want you to remember this, that fico score. It's basically a scam and it comes to dab. Okay. It is just the iLab depths score or I am a good financial slays score. Okay. So a person that is high or depth and you loved there than the fico score is important to you. Okay, so another blazing tip here for you. If you are an impulse spender, QA, we just enough cash to get what you want. So that just shopping doesn't become expensive. You know, those type of shopping that I'm talking about, you know, those urges that you get when you go into the shop, you go for one pair of jeans and when you leave you up three-page genes and to tannins, 3pm shoes, you even have a bag and a scar. You have all kinds of things you went for one genes are once you And you came up with 34 bags of stuff because you have that credit card which you or their debit card. And so to avoid those type of things, when you know that you have financial goals, please, carriages and of caching get only what you. Winds, ok, avoid those shopping urges and those sharpen impulses. So here are some things to remember. When you use credit cards, you're putting yourself in debt. When you use your debit card, you are using your own money. When you use a debit card, it makes you more aware of how you're spending your money. Know when to use your credit card. It offers great fraud protection and security. But you must pay that debt off inferred so that it doesn't cost you any more interests. Another thing that I want you to remember, credit cards are not worth the interests being charged for using the card, so don't get hung up on credit card rewards. What is next? Set up an emergency fund to eliminate the need for debt, you must remember and know, keep this inside. You're my. Credit cards are not designed to build wealth, they are designed to keep you in debt. And so here was a strategy that I'll be teaching you that can help you to not have to run to the arms of credit cards because you have money, you are prepared for emergencies and disasters. That is your emergency fund. So you don't want to miss this amazing lesson that is coming up next. Stay tuned. And I hope at this point that you would have given me or review, please give me a review and let me know what you think of this cost if you haven't done so as yet. 11. Setting up an Emergency Fund : In this lesson, we will discuss how to set up an emergency fund to eliminate the need for that. So in this class, you will be given strategies on how you can set up an emergency phone. You will also learn why it is important to have an emergency fund and what you should not spin your emergency fund. So let's get started quickly on how to set up an emergency fund. It's important to know that credit cards are not required for financial success. This means that you don't need to feel that if you don't have a credit card, you not successful. You can have it for things such as online shopping and all of those need because some places do not require cash anymore, do not want you to make payments on cash now these days. And so you probably will never be able to avoid having the credit card or debit card. But you must know that it is not required for financial success, so you don't have to feel a heavy burden. You should know that credit cards are designed to create depth, not belt. If your goal is financial freedom, where you don't have to worry about money and you want to build wealth for you and your family. Set up a solid emergency fund. This is a good place to start. For some people. Jaap is the result of an unanticipated expenses. It's not that they have Paul spending habits or poor money management skills. They were confronted with some circumstances that they didn't prepare for. So here are some emergencies. Medical bills, car repairs, house maintenance and house repairs, job loss. You know, if you have a job there's no telling when you can be fired or when you'll be let go. And so some people find themselves without a job. And so they have to run to that credit card because they don't have any funds to support them during the job loss period. And so that is extremely important, you know, to be able to not have the pen on a job because a job is not safe, it is not secured. You are not the master and boss of your own destination. Another thing is emergencies in regards to your family members. If you have kids, you know, things happen, things pop up. They always need something and so you need to have funds that is available to take care of these situations and needs. And then you have other important needs that might not be connected to the things that I've gone. And so anything that is urgent and it is needed for you to survive, it is an emergency. Dap is definitely not something people plan for. You know, you don't wake up in the morning and decide that you want to be imbedded in there. You don't wake up at that on your mind. But it happens. You don't plan for depth, but it happens. Ok, depth is a result of a lack of planning. So now that you know it is a result of the lack of planning, then you need to properly plan for those rainy days. And I can tell you that rainy days are inevitable. It is something that is going to happen. You are going to have some times in your life when things are going to pop up and you need to be prepared for those things. If you are not prepared for two things, it is going to cause you a lot of stress, a lot of pain, and heartache, a lot of frustration, and it is not needed. If you can properly plan July. First to start an emergency fund, you should calculate how much your monthly expenses are. How much does it cost you each month to cover your needs? And so you can even take it further. It doesn't only have to be an expense is put your salary. Okay. Whatever your salary is for the month, you can go run with that or if you want to just lump them in it down to your expenses, it depends on what you really want to do. I think it makes more sense to use your entire salary or entire monthly cell. The ideal emergency fund covers your expenses of six to nine months. So the total of expenses each month, you can multiply that by either six or nine. For example, just say your expenses are a $1000 a month. And so you would take that $1000, you would times it by sex, and that will give you $6 thousand. So you know that you're running figure 6 thousand. You need to have at least $6 thousand in your bank account to help you get over those rainy days, should you encounter some problem? If you set up an emergency fund where you have 69 months worth of expenses saved, you would need to grab your credit card when you run into problems. You will be able to use your own money that you save and guess what? It's not costing you any interests. It is not costing you any added depth and any added burden on stress because you properly planned for that. If you need to make a purchase with your credit card for online payments, or if you travel to a foreign country where you prefer to use a credit card, you can pay it off in folk before the next billing cycle. So you, you're not trying to find this money to pay the bank back. You have this money already and all you need to do is go to your account and pay the buying back if you choose to pay with your credit card, this is what it is called when you are in control of your life, okay? You need to put yourself in a place where you are in control and your money is not running you or telling it, telling you where it needs to go, but you are telling your money where you want it to go. That's planning for every dollar that you receive. So here is something that is important. Make sure set up auto payments. Open a different savings account for your emergency fund. Do not tie these funds to an account that you use regularly, you must make sure that with every account you choose, it is easily assessable and it is illiquid, right? You can get that right away instantly. Do not put it in any stocks or bonds. An unexpected to try to get it when you reach in emergency, no, it must be liquid. Okay. If you make this mistake of tying your emergency funds to your savings account, you're going to be dipping into that account and you're going to use it for things that you didn't intend it to use it for. So you want this account to be separate and apart. You know exactly what that is for and why it is there and is not easily assessable where you can just run it in an atm right away so easy and just get money to spend it on things that you don't need it for. So make the font automatic from another account or from your salary so that it reaches you are without your effort. Just how the bank requires auto payments to pay off their alone. Use this same strategy to build your emergency fund. And so it does not require you to have to go and actually post this money to your account. Some people don't have the financial discipline to do that. When you set up an auto permit, that money is going strictly to that account without you even having to borrow it. It, it is going there automatically. Okay. And so you want to do that just to make sure that that account is being funded for when you need it. Now, if you cannot afford $6 thousand like the example that we would have used up front, that's fine. You can start off with a $1000. Just make sure accumulate at least $1000 for your emergency fund. But that they are in your account and then you, as you make money or as you get your income, you are building that account to the required firms. So here are things that you need to know. Your emergency fund is not a shopping spree account. It is not a sharpened species. Ok. If you see a pair of jeans that you want, if you want to go on a lavish vacation, it should not come from your emergency fund. You should have accounts separate and apart for those type of things. It is not that come from this account, this emergency fund account because you are sharpened spree your bike and your shoes is not an emergency. Your vacation is not an emergency. Okay. Sometimes we have we all have those days when we want to relax and be entities, a recreational life. This is not for that. You should have something separate for those type of things. Okay. Charity donations. I know you might love to gave and it giving us wonderful. It is something that you should have in your budget, you know, to give until Be kind and compassionate. But it should not come from your emergency fund. Education and causes should not come from your emergency fund. That is not an emergency. Okay. And any other thing that is not classified as an emergency, please do not use this account for that. You must be disciplined. You set your goal, you know, would you, while you up this account there and you want those funds, the b therefore, when you really need it, if you have a medical emergency and you need to go to the doctor, hey, yeah, life is at stake. You need these funds for that. So you cannot afford to play around and use it for things that are not important. So here's a recap on what we have learned in this lesson. Set up an emergency fund of at least six to nine months worth of expenses. Credit cards are designed to keep you in depth. Another key point, you can start with just $100, then build your account from there. Make the funds auto. That is a very important key points. Make the funds auto. Don't use the funds for anything other than what is an emergency. Okay. And let me leave you with a blazing hot tip. I love to give tips, right? And here is a key tip for this lesson. The key to avoiding unnecessary credit card bill is to build wealth. That's right, is as simple as that. Simple as brawn to three bell belt when you have, when you don't need to run to the arms of other people, you don't need to run to the hands of the bank or credit institutions because you have your funds available, you only run to them if you need to. And you know that when you write to them, you can afford to pay them back. Okay? So the tip for the day create cash cushion. 12. FICO Score Estimator Live Example: Okay, so if you are interested in your credit and you want to know what your fico score may be. Hare is an estimated that you can use the go-ahead and calculate your score. Now it's important to know that when you choose between your credit card and debit card, like I would have covered. The debit card does not allow you to get a credit score. And so the benefit of using a credit card is so that you can boost your credit if you are interested in getting loans or having a good score. So let us take this short quiz here so we can go ahead and find out what score may be. So it says, how many credit cards do you have? Let's say one. How long ago did you get your first credit card? Well, let's say we got quite a card five to eight years ago. Okay. How long ago did you get your first loan? That is all auto loan, mortgage, student loan, etcetera. We are going to go with five to ten years. How many loans or credit cards have you applied for in the last year? Less say none. You have an apply for any because we have had one for over ten years. And so how we recently have you opened a new loan or credit card? Recently? More than six months ago. Okay. How many of you are loans or credit cards currently have? Violence? 024. That would be one to two that we have. But size anymore, which loans what are your tone balances on all other loans and credit cards combined? Let's say 100 to 489. When did you last Miss alone or credit card payments? When did you guys say the last time in miss alone or credit card payment with 2-3 years ago. What is the most delinquent you have ever been on alone or credit card, let's say 30 days. How many of your loans or credit cards are currently path? Do we wanna say none? Okay. What percent of your total credit card limit to your credit card balance represents? And let's say 30, 3239% as just that. In the last ten years, have you ever experienced buying Guanzi? We possess an or an account in collections, so let's say No. Okay, and here it calculates your score, okay, so is estimated to be between 4603200720. Okay? And so let's look at the the score and what does it mean? So scar wings can be poor, fair, good, very good, or exceptional, defined by the ranges in the chart below. So exceptional means that just cause between 800 to 850. Okay. And so very good is 742799. And so this guy here, I will place us in good, which is 670 to 739. So fair as 580 to 669 and Paul is 300 to 579. So you can use this estimator right here, kind of figural where you are when it comes to your fico score. And if you want to get your actual fica, fica score, you can go ahead and click sign up. Now, right here on this site is called my fecal.com. And so you can use this site to go ahead and get your credit score together if you desire. So I hope that you have enjoyed this lesson. Please stick it out with me and follow me in the next lesson.