FINANCIAL LITERACY 101
MODULE 1 - DEBT MANAGEMENT
Literacy in Financial Education (LIFE) Center
Financial Literacy Webinar designed for
EIU Graduate Students
Funded by TIAA-CREF
National Council on Graduate Studies
PAYING DOWN
DEBT

Pay off highest interest debt



Refinance


Make all minimum payments
Put extra money towards highest interest
debt
Reapply for a loan with a lower
interest rate or shorter term
Debt consolidation


Consolidate all debt into one place
Hurts your credit score
Wellsfargo.com
Types of
Debt
Rate (2/24/15)
Credit
Cards
15.76% (variable)
13.02% (all fixed)
Mortgage
3.96% (30 year)
3.21% (15 year)
Auto
Loans
4.86% (3 year,
used)
4.06% (5 year,
new)
Student
Loans
4.66% (Stafford)
Bankrate.com
DEBT REPAYMENT
Total
Credit
Interest
Months Years to
Cost
Monthly
Card
Rate (%)
to Pay Off Pay Off (Balance
Payment
Balance Charged
Balance Balance
+
Interest)
$2,000
18%
$40
minimum
$2,000
18%
$50
60
5.0
$3,004
$2,000
18%
$150
15
1.3
$2,211
90
7.5
$3,608
Nefe.org