Managing Credit Card Debt & Personal Loans
Taking charge of your financial future is crucial for realizing the American Dream. This workshop equips participants with powerful strategies to manage their finances effectively. You will master the art of tackling and eliminating debt from credit cards and personal loans while understanding the importance of rebuilding your credit. Our focus is empowering you to achieve lasting financial health and stability with confidence and clarity.
Workshop Objective:
Module 1: Fixing Your Financial Future by Understanding Debt
- Learning Objective:
- Participants will gain a clear understanding of how credit card debt and personal loans work.
- Key Topics:
- Types of debt: Credit card vs. Personal loans
- Interest rates and how they accumulate
- Impact of debt on credit scores
- Minimum payments and their long-term impact
- Activities:
- Interactive discussion: Identifying types of debts participants have
- Mini-exercise: Calculating interest on typical credit card balances
Module 2: Creating a Debt Repayment Plan
- Learning Objective:
- Equip participants with tools to create a personalized debt repayment plan.
- Key Topics:
- Debt Snowball vs. Debt Avalanche: Choosing a strategy
- Creating a realistic budget to prioritize debt repayment
- Setting short-term and long-term financial goals
- Importance of tracking progress
- Activities:
- Workshop: Building your debt repayment plan (worksheet provided)
- Goal-setting session: Define personal financial goals and repayment milestones
Module 3: Negotiating with Creditors & Debt Consolidation Options
- Learning Objective:
- Teach participants negotiation strategies and explore options to lower monthly payments and reduce interest rates.
- Key Topics:
- Negotiating with creditors: How to request lower interest rates or payment adjustments
- Debt consolidation: Pros and cons of consolidating debts into one payment
- Using balance transfers or personal loans to manage high-interest debt
- Activities:
- Role-playing: Practice negotiating with creditors (script provided)
- Group activity: Evaluating debt consolidation options using case studies
Module 4: Rebuilding Credit After Debt Repayment
- Learning Objective:
- Provide participants with strategies to improve their credit scores after debt reduction.
- Key Topics:
- How credit scores are calculated
- Building credit responsibly after paying off debt
- Utilizing secured credit cards and timely bill payments
- Avoiding common credit pitfalls (e.g., closing accounts too early)
- Activities:
- Credit score analysis: How to read and interpret your credit report
- Brainstorm session: Steps to take after debt repayment to rebuild credit
Module 5: Long-Term Financial Wellness
- Learning Objective:
- Focus on creating habits for long-term financial health and avoiding debt relapse.
- Key Topics:
- Creating an emergency fund to avoid future debt
- Saving for major expenses (e.g., home, car)
- Investing and building passive income
- The psychology of money: Avoiding emotional spending
- Activities:
- Budgeting exercise: Allocating future income toward savings and investments
- Discussion: How to maintain financial discipline and avoid future debt traps.
Your Financial Future
To significantly improve the overall experience of our workshop, we are committed to providing a variety of practical examples and comprehensive documentation in our upcoming posts. These resources will deepen our visitors’ understanding of the material, ensuring they have the tools necessary to maximize their learning and apply concepts effectively. By offering these additional materials, participants will be better equipped to engage with the content and make the most of their time with us.
- Debt repayment worksheets (Snowball and Avalanche templates)
- Budgeting and goal-setting guides
- Credit score rebuilding checklist
- Negotiation scripts and case studies
Conclusion:
- Call to Action:
- Encourage participants to take immediate steps to implement their debt repayment plans.
- Provide resources for ongoing financial literacy (e.g., books, websites, financial counseling services).
Post-Workshop Support:
- Provide a follow-up email series with tips and reminders to stay on track with debt repayment.
- Encourage participants to attend future workshops on advanced financial topics.
