Your Money, Your Matters  

A staggering one in 84 homes nationwide has received a foreclosure filing in the first half of 2009, and according to at least one study, the delinquency rate has increased dramatically from this time last year, with 9.24 percent of all loans outstanding for the end of the second quarter of 2009. This increase in filings affects homeowners of all ages, from the Baby Boomers considering reverse mortgage relief to first-time homebuyers looking for stability in a volatile economy that saw the largest foreclosure crisis in 35 years during 2008. With rampant foreclosure postings comes propaganda schemes under the guise of providing a quick solution to the crisis, cautions Todd Mark, vice president of education for Consumer Credit Counseling Service (CCCS). Such schemes range from phony counseling to hollow “rescue loans” and even rent-to-buy schemes that promise “easy outs” and only lock victims into additional stress. Honest assistance is available for the consumer but mistaking a false hope for salvation could be the start of an avalanche of costly mistakes. TCUL president and CEO Dick Ensweiler speaks with Mark, for a fact-finding look at shutting the door on the growing number of foreclosure scammers operating and taking advantage of consumers in need of answers to their questions. Mark confirms that housing counseling at CCCS grew an astonishing 294 percent from 2007 to 2008 and the need for accurate information and steps to take when negotiating alternatives, seeking more affordable housing or recovering from one of the many engrained scamming operations that relieve consumers’ of their money, their housing and their confidence is more important than ever. The duo will discuss the warning signs of fraudulent foreclosure offers, as well as establish what listeners can do to recover their housing needs both through the advantageous services of CCCS and other tips to keep in mind when working with foreclosure prevention.

Overdraft protection is a financial product that has fans and foes. For our listeners who may be unfamiliar with the product, overdraft protection, or courtesy pay as it’s referred to by some credit unions, is a service that covers what is, in effect, a bad check. Overdraft programs, if used correctly, help resolve consumers’ short-term financial problems, but it is not a loan. If you’ve ever bounced a check, you know how expensive that can be. Most merchants will charge a non-sufficient fund fee upwards of $30 per incident. On top of that, the financial institution will also charge you the over drawn fee (or NSF). With overdraft protection, transaction fees vary by institution, but typically range anywhere from $25-$35, saving consumers both the fee from merchants for an insufficient funds check and the NSF from the financial institution. For many people who get cash strapped by unforeseen expenses, the alternative to overdraft protection is predatory lenders. Join host Dick Ensweiler and special guest Carolyn Jordan, senior vice president at Neighborhood Credit Union in Dallas, for this thought-provoking discussion about a product hailed by some as a lifesaver, and opposed by others. The duo will also get to the root of the issue, and that is financial literacy, or the lack thereof.

The FICO score is perhaps one of the most important pieces of information the consumer needs to know, and understand. This three-digit number is a vital part of your financial health, and unfortunately, a Consumer Federation of America (CFA) study finds that American consumers have a "poor" grasp of the mechanics and importance of credit scores. Jenny Stewart, education and housing director for Consumer Credit Counseling Service in Dallas, says among other things, this lack of knowledge can cost consumers thousands of dollars when it comes to obtaining credit; result in apartment applications being turned down, and require hefty deposits for services such as telephone, electricity or natural gas. According to the CFA study, less than a third of survey respondents were aware of the meaning or uses of credit scores, and a stunning 74 percent of respondents said they believe that their income level influences their credit score -- despite the fact that the credit bureaus have no access to data on personal income, and do not maintain records on income. Stewart says it is an unfortunately reality that despite widespread efforts to educate the public about the importance of personal credit scores and how it affect their everyday lives, consumers still have a lot to learn when it comes to credit scores. National studies, including those conducted by the CFA, reveal that far too many consumers do not realize that their credit score can determine what they pay for auto financing and leasing, credit cards, mortgages, and insurance, or influence an employers hiring decision. Join Stewart and host Dick Ensweiler for this in depth discussion of how credit scores work, how your score is calculated, what affects your score, how your score affects your financial health, and what steps you can take to improve your score.

Homeownership is like a rite of passage. Getting the keys to your first home symbolizes the establishment of “roots.” And while homeownership has many benefits and certainly offers a sense of accomplishment, it also increases your financial responsibilities, cautions Richard Whitman, vice president of mortgage lending with Texas Trust Credit Union in Grand Prairie. It’s important to fully comprehend all of the costs involved with purchasing and maintaining a home. You need to realize that homeownership is a lifestyle change. Whether you are considering purchasing a home, refinancing a home or accessing the equity in your home, you need to understand the different types of loans that are available, the pros and cons to each, and identify the most appropriate for your personal financial situation. With an adjustable rate mortgage, for example, you might enjoy a lower monthly payment initially, but you need to be aware of the risks because the interest rate on an adjustable rate mortgage adjusts with interest rates in the marketplace. A fixed rate mortgage offers greater security in that the monthly principal and interest payments are fixed and amortized over the term of the loan, whether it a 15 or 30-year mortgage. Join Whitman and host Dick Ensweiler for this in depth discussion of homeownership. This 30-minute program will help you determine whether buying a home (or refinancing a home) in this economy is a wise investment. Additionally, this informative program will better prepare you for determining: • How much home you can afford; • How much cash you’ll need to purchase a home; • True costs of owning a home; • A type of mortgage that is best for you; • Is a home equity loan a smart choice; and • If you qualify for a reverse mortgage

Developing strong money management skills is essential to maximizing your income and savings; controlling expenses, and minimizing debt. Unfortunately, most Americans don't know how to manage their personal finances, and as a result, find themselves in a compromising position – financially speaking that is. According to the 2009 Consumer Financial Literacy Survey, 41 percent of U.S. adults gave themselves a grade C or below for their own knowledge of personal finance. This same survey found that 32 percent of respondents had no savings, excluding retirement savings. A Jump$tart Coalition Survey finds that minorities particularly suffer from financial literacy. African-American students, the coalition reports, are only about 80 percent as financially literate as white students. And an earlier survey from the Networks Financial Institute reveals that only 28 percent of Americans view their financial knowledge as “good” or “excellent.” The reality is far too many American households struggle to make ends meet, and lack the “know how” to improve their financial circumstances. Having a plan for your money is critical for meeting your monthly financial obligations, as well short and long-term financial goals. In these difficult economic times, consumers now more than ever need to increase their financial literacy. They need to understand the importance of saving, budgeting, tracking their spending, setting goals, and borrowing wisely. Join Courtney Nickles, interim executive director with the Texas Credit Union Foundation and host Dick Ensweiler in this thought-provoking discussion of what Nickles’ calls a financial illiteracy epidemic. Tune into this 30-minute program and learn how changing the way you look at money can set you on a course for financial independence!

According to the latest Gallup poll, Americans today are worried about a wide variety of personal financial problems. Fifteen percent of survey participants expressed concern that they have a “lack of money;” 12 percent worried about the cost of owning or renting a home, and 10 percent fear they have too much debt. The concern of not having enough money to pay debt is particularly prevalent among middle and low-income households. American consumers have reached record-high debt levels. In October of 2008, credit card debt reached $1 trillion! Myfico.com reports that today’s consumer has a total of 13 credit obligations on record at a credit bureau. These include credit cards and installment loans, such as car loans and mortgages. Perhaps most concerning is the fact that too many Americans are drowning in debt and don’t know how to get out of debt. An Economic Literacy Survey recently published by Econ4U reveals that 71 percent of people severely underestimate the amount of time it would take to pay off a credit card balance only making the minimum payments. Join Richard Whitman, vice president of mortgage lending with Texas Trust Credit Union, and host Dick Ensweiler as they weigh in on the issue of consumer debt and offer strategies and tips for getting out of debt and on the path to financial freedom.