DEBT SPEECH

"RICH ON ANY INCOME"
Topic:	Money Management
Specific Purpose:	Teach the benefits of not going into debt.
Thesis:	I want you to learn the benefits of not going into debt so that you are motivated to do so, by talking about the three following points which are:
		1. The advantages and disadvantages of buying on credit.
		2. The benefits of staying out of debt.
		3. How to get out of debt and stay out.

INTRODUCTION
Attention Material:	Question: If I offered each one of you a check between $2,000 and $5,000 would you be interested? Has to do with how you spend your money - Show Credit Cards & Cash
Credibility Material:	I used to work at Discover Card, and have also learned some money management skills.
Thesis Statement:	I want you to learn the benefits of not going into debt so that you are motivated to do so, by talking about the three following points which are:
Preview:		1. The advantages and disadvantages of buying on credit.
		2. The benefits of staying out of debt.
		3. How to get out of debt and stay out.
Transition:	First, the advantages and disadvanteges of using credit cards.

BODY
I. Credit cards are like a double edged sword.
	A. Advantages
		1. Not cash.
		2. Easier than checks.
		3. Many places accept only credit cards - car rental, phone, internet.
		4. Freedom, have now - pay later. (clothes, furniture, cars, etc.)
		5. Establish credit.
		6. Emergencies
	B. Disadvantages
		1. Hard to keep track of spending.
		2. Easy to go into debt.
Transition:	Those were the advantages and disadvantages. Second - Benefits of staying out of debt.

II. Being debt free is like getting that big bonus check at the end of the month.
	A. Example of debt.
		1. If $10,000 at 20% interest is $2,000 yearly
		2. Payment is about 3% = $300, interest is $170, debt down $130
	B. Example of savings.
		1. Saved $10,000 at 10% is $1,000 yearly.
		2. Extra $85 monthly for $300 + $85 = $385
Transition:	Those are the benefits. Third and finally - how to get out of debt and stay out.

III. Getting out of debt requires DISCIPLINE.
	A. Make a budget. (Will make you free.)
		1. Income & Expenses
		2. Budget according to your needs and wants.
	B. Pay off debts.
		1. Chart - pay more than minimum.
		2. Pay more on home.
	C. Use credit cards responsibly.
		1. Only spend for what can afford.
		2. Pay off in full. 0%
	D. Save some 10%, 5%, 1%.
		1. Freedom, saved before - have now. Clothes, furniture, cars, etc.
		2. Emergencies.
Transition:	That's how to get out of debt and stay out.

CONCLUSION
Summary Statement:	Now that I've told you:
		1. The advantages and disadvantages of buying on credit.
		2. The benefits of staying out of debt.
		3. How to get out of debt and stay out.
	I hope you feel motivated to stay out of debt.
Concluding Remarks:	By doing so you could get a $2,000 to $5,000 check each year.
Enabling Statement:	If you would like that extra money, choose to be debt free.