THE RECOVERY – A NEW REALITY?

So, two “WHEN” questions: WHEN am I going to get a REAL rate on my certificate, and WHEN will the economy around here get back to normal?  The UN-clever and UN-funny answer we need to consider is that for practical considerations, this is the new Reality.

I have to consider things like this when planning for the credit union and reluctantly, I’m forced to look at things in Michigan, the nation and the effects of the current international economic situation. Though the unemployment rate in Michigan is easing. The Euro market is teetering (technical term) and may face the loss of some members. The 10-year T-Bill is at historical lows; currently around 1.5%, with possibilities of going lower and few expectations of going materially higher. The relative magic of the 10-year T-Bill is that mortgage loan rates are generally tied to it and it is telling us, “Stop worrying about inflation for the next five to ten years.”  Ergo, nothing is going up for at least five years, if not longer.

Kind of a downer, especially for us Boomers dependent upon savings rates, but there are some rays-of-light and positive perspectives to consider. First, we are actually in a recovery. Not an exciting one but things are going in the right direction, albeit slowly. Second, things around here are relatively stable and that’s good because you should be able to make some decisions to help you optimize the circumstances instead of waiting for a complete collapse.

I hate saying this, but you should be looking to pay down or payoff your borrowings. Yes, at the credit union, but look at the other loans you have at that “other place” and see if the credit union can get you a better rate. We refinance vehicles, mortgages and personal loans. Are you paying fees on your checking account? You should be talking to our branch staff to see if you can close that second checking account at the “other place” and take advantage of Sterling Van Dyke Credit Union's CORE relationship advantages that not only provide you with free services, but interest rate bumps on loans and certificates too. You should consider moving some of your extra money back into certificates to get any type of rate advantage. Many members have let maturing certificate drop into their regular savings or money market account. Even if it is only a five or ten basis point advantage, why wouldn’t you grab it? Get your CORE account bump. Consider longer and multiple terms on your certificates and “laddering” multiple certificates maturities to increase the overall yield while preserving liquidity. Remember to keep a six month cushion in liquidity for tires, insurance and the little emergencies. Consider letting our Financial Advisor look at your longer term alternatives.

We have a ways to go, but remember that you belong to a NOT-FOR-PROFIT credit union that is established for the benefit of its members – not a bank where the goal is to maximize how much they can get out of you. Take advantage of every opportunity your credit union offers. We’re with you for life, and all its realities.

http://www.greatbasin.org/blog/?p=432

Blog By: Sterling Van Dyke Credit Union

Women to Watch 2012: An In-Depth Look at the Industry Supporters

By Myriam DiGiovanni


When Credit Union Times first launched the Women to Watch program, we wanted to focus on those women working within credit unions. It’s been an honor to be able to recognize those who challenge the status quo and push creative solutions to address what ails their credit union and oftentimes, the industry as a whole.
What we discovered is that it is just as important to shine the spotlight on those women who have been tirelessly dedicated to providing support to credit unions. The list is far from complete, but we thought this Women to Watch focus report would be a good start to showcase those who choose to champion the credit union mission every day.
A brief look at each of our honorees appeared in our Oct. 3 print edition. Here are detailed profiles of each of these industry leaders. Click "next" at the bottom of each page through the following slide show to see them all.

Continue Reading by clicking here.

Blog by Sterling Van Dyke Credit Union.

BACK TO SCHOOL SAFETY

Backpacks are a popular and practical way for students to carry their books and supplies.  When used correctly, the backpack’s weight is distributed to some of the body’s strongest muscles and is an efficient way to carry these items.  However, if backpacks are too heavy or worn incorrectly, then they can cause back, neck and shoulder pain, as well as posture problems.

To choose the right backpack, look for the following:

1)     Wide, padded shoulder straps.  Narrow straps can dig into shoulders causing pain and restricting circulation.

2)     Two shoulder straps.  Backpacks with only one strap cannot distribute the weight evenly.

3)     Padded back.  This protects against sharp edges from inside the pack and increases comfort.

4)     Waist strap.  This can distribute the weight of a heavy load more evenly.

5)     Lightweight.  The backpack itself should not add much weight to the load.

6)     Rolling backpack.  This type is good for students who must carry heavy loads. 

To prevent injuries when using a backpack, remind your children of the following:

1)     Always use both shoulder straps

2)     Tighten the straps so that the pack is close to the body.

3)     Pack as lightly as possible.

4)     Organize the backpack so all the compartments are being used.

5)     Stop at your locker as often as possible and remove any unnecessary books or items.

6)     Bend down using both knees while the backpack is on.

Parents should encourage your child or teenager to tell you if he/she is in pain or discomfort while carrying the backpack.

Parents should talk to the school about lightening the load during school hours so children can stop at their lockers throughout the day.

Researchers found that the average weight of a child’s school backpack was 18 pounds, or 14 percent of his/her body weight.  Studies have found that children carrying backpacks exceeding 10 percent of their body weight are more likely to lean forward while walking-potentially increasing their risk of back pain.  Parents should talk to their children and make sure that they are using their backpacks correctly. 

WAYS TO AVOID COMMON FINANCIAL MISTAKES

1)     Create a Budget

Keep track of where your money goes by creating a budget.  Make a list of your monthly expenses and subtract this from your net pay monthly.  The money left over is your discretionary income.  A budget will help you spend wisely, control debt and help plan for major purchases and emergencies.

2)     Discuss money and financial goals

       Talk about your and your partner’s money strengths and weaknesses and your short-

       term and long-term financial goals.  Try to find a common ground for spending and

       saving.

     

3)     Share responsibilities

 Decide how to handle day-to-day finances.  You can decide who is responsible for what in your finances.  Make that you review your household finances together on a monthly basis so that you both know what is going on.

4)     Talk about “What ifs”

 What would happen financially if one of you were to become disabled or died 

  unexpectedly?  If you don’t know, then you need to talk about it.  You should have a 

  will and think about buying or adding disability insurance and possibly life

  insurance.  Make sure that your beneficiary designations on retirement and other

  accounts and life insurance policies are up to date.

Money mistakes can be expensive and could impact your future security.  Take the

time now to work together to make sure that you avoid future financial mistakes. 

Where to Find Better Interest Rates For Your Savings

Are you tired of earning a pittance on your hard earned savings? Not too long ago you could earn 3%, 4%, 5% or more by sticking your cash in a high yield savings account. But today? Not even close. Interest rates now top out in the low 1% range, and it seems like there’s no light at the end of the tunnel.

So what’s a savvy saver to do? Well, you could just accept the low rates as an unavoidable consequence of the current economic landscape, or… You could get creative and get at least a bit more bang for your buck. Here are three ways to get a better rate for your savings.

High yield (rewards) checking accounts

While savings accounts were once home to the highest interest rates, checking accounts are now getting in on the action. Be forewarned that you may have to jump through some hoops – like setting up direct deposit and making a minimum number of debit card transactions per month – but if you’re up to the challenge, you can score a great rate.

For example, MoneyRates.com currently lists reward checking accounts with rates as high as 5.01% APY. Note that many of these offers are regional, so you may have to shop around a bit, but there are some killer deals out there for the taking.

Long-term CDs with low penalties

I’ve mentioned this one in the past, but if you can find a bank with a low penalty for early withdrawal, you can use long-term CDs to get a higher interest with minimal downside risk. For example, Ally Bank has a 60 day interest penalty if you break their CDs early.

Given that Ally’s five year CD rates are paying roughly double what you can get from an online savings account, the break-even point is roughly four months. Beyond that point, you’ll come out ahead relative to having your money in a savings account, even if you have to access the money before the CD matures. And if rates rise dramatically, you can simply break your CD and re-invest.

If you go this route, here’s a tip: Split your money into multiple CDs. That way you can access just a portion of it without paying a penalty for early withdrawal of the full amount.

Series I savings bonds

Another solid option is to use Series I savings bonds, which are inflation-indexed bonds offered by the U.S. government. Rates on I bonds are updated semi-annually in May and November. As of right now, newly-issued I bonds are paying 4.6%, though that number will fluctuate over time depending on the inflation rate.

The downside here is that I bonds cannot be redeemed during the first 12 months, so they’re not a great vehicle for your emergency fund – or at least not for yourentire emergency fund. But once that 12 months is up, you can redeem them. Between 1-5 years after they’re issued, there’s a 90 day interest penalty, and after five years you can redeem them penalty free.

Beyond offering a decent interest rate (at least relative to a savings account), interest that you earn from I bonds isn’t taxed until redemption (i.e., it’s tax deferred) and it’s also exempt from state income taxes – as well as federal taxes if you use the proceed to for eligible education expenses.

But don’t get greedy…

And now… A word to the wise. In general terms, if you’re holding cash, you probably want if to be both safe and reasonably liquid. You should thus avoid locking it up or taking unnecessary risks with it. In this vein, I would recommend shying away from things like peer lending.

While outfits like Lending Club tout 8-10% annual returns, and you sometimes see them mentioned in discussions related to improving your interest rates, the reality is that they are neither risk-free nor liquid. While investments like this may have their place in your portfolio, they’re far from being a cash equivalent.

http://www.fivecentnickel.com/2011/08/01/where-to-find-better-interest-rates-for-your-savings/

Blog hosted by Sterling Van Dyke Credit Union

Types Of Home Loans

The biggest purchase a family will probably ever make is their home.  Researching how to make an informed choice on where and what type of home loan to apply for can seem to be a lot of work. It truly isn’t though.  Anyone who has access to the Internet can cut their research time down by merely researching instead on different types of home loans.

There are literally thousands of articles out there that can educate a consumer on any topic they need. This is truly a benefit that the age-of-Internet has brought to consumers. There are many online sites that will give you the benefit of their research to help anyone to find just the right home loan.  So researching via the Internet, will find a person all they would need to know about the different types of loans.

In this regard, the Internet makes it so much easier for the consumer who is contemplating becoming a first time home owner, to research types of home loans. Letting someone else who has done all the research inform the consumer is a great time-saving tool for busy consumers.

The simple act of typing what the loan is needed for and asking for the top recommendations from experts can prepare them to get their loan. Using all the technological tools available will greatly minimize finding out all a person needs to know on this subject.

The consumer contemplating the types of home loans can learn all they need to know about the difference in each. There are VA loans or Veterans Association loans. If at any time you’ve served in the service a consumer may qualify for this type of mortgage. It basically is a mortgage that is secured by the military. Basically, they the military, becomes the co-signer.

Then another option is the FHA or the Federal Housing Association. FHA loans are usually made available to lower income consumers, which reside in America. These loans are usually backed by the government. These loans can be very helpful to people that cannot afford a conventional down payment.

Then there are variable rate loans and fixed rate loans. The difference between a fixed rate and a variable rate are in how they set the interest that a consumer needs to repay. Obviously the fixed rate is one interest rate that is set for the term of the loan. A variable rate is one that the interest rate fluctuates during the course of the loan. Obviously there are advantages and disadvantages to each and a fair amount of research will be required to pick out just the right rate for the prospective home owner.

Here is where types of home loans come in handy. The research to be an informed consumer in the area of home loans can be greatly cut down by the Internets vast amount of available research. Not only can a consumer learn exactly what’s available out there for them to choose from, but, they can learn the right questions to ask when actually picking one.

http://howtomanagemoneytips.com/types-of-home-loans/

Blog by Sterling Van Dyke Credit Union. Sterling Van Dyke Credit Union services anyone working or living in Macomb, Oakland or Wayne County, Michigan. Current residents, retirees receiving a pension or social security and immediate family members are eligible to join. Sterling Van Dyke Credit Union is owned and operated entirely by its member and strives to follow the purpose of the credit union as set forth in the bylaws.

Seven Frugal Ways to Keep Your Kids Busy This Summer

For kids, summer is a lovely long stretch of day camps, playing with friends, going to the pool, and generally having fun. But for parents, struggling to keep those little folks busy can get costly. Trips to amusement parks, sporting events, museums, and such can seriously stretch a budget. And that’s not even counting thefamily vacation!

But it doesn’t have to be that way. While some summer outlays cannot be avoided, many expensive activities can be replaced with cost-free alternatives. Here are seven cheap ways to keep junior busy.

Treasure hunt

Write clues on scraps of paper and hide them in your yard, house, garage, wherever, and have each clue direct your kid to the next clue. Make the clues as easy or hard as needed, depending on how clever you believe your child is. If your child is into math, make the clues involve some calculations. Make the last clue lead to some treat. You can do this game with a group of kids, too, by dividing them into teams and setting up multiple clue trails.

Scavenger hunt

An alternative to the treasure hunt is a scavenger hunt. Make a list of items your child (or each team) is required to find. As with the clues in the treasure hunt, make the items as easy or hard to find as needed depending on your child’s abilities.

Camera day

Remember when using a camera was an expensive proposition, with the cost of film, developing, and prints? That’s a thing of the past — your digital camera doesn’t cost anything to use… But your kids will still get a thrill out of being photographers for a day.

Take them to favorite places and let them shoot away. Get on the bus or train, visit the park or beach, anyplace you like going. They’ll get an extra thrill documenting every step of the way. Upload the photos to your computer and print out a select few to create a collage. It will be a day to remember, and your wallet will be just as thick as it was when the day started.

Magic show

Do you remember the fun you had the last time you saw a magic show? Let your kids in on the action by having them set up their own magic show for friends and family. Here are two easy tricks any kid can master:

1. Shuffle a deck of cards and quickly glance at the bottom card. Let someone pick a card, any card. Have the person put the card at the bottom of the deck. Lightly shuffle the deck again. Flip through the deck until you find the card that was originally on the bottom; the next card should be the card the person picked. Pull it out with a flourish!
2. Next hold a carrot under a handkerchief as if it’s your finger. Tell the crowd you’ve discovered a secret formula for resisting pain. Poke a pin deep into the carrot… The crowd will shudder while you coolly pull it back out without a wince.

You can find plenty of other easy tricks online.

Lemonade stand

Even if your kid’s not a budding entrepreneur, she’ll love the thrill of the first paying customer. A lemonade stand is an easy proposition — mix up some powdered drink, set up a table on the sidewalk, and make a sign. No one gets rich this way, but it does introduce your child to the basics of sales and profit, and keeps her occupied for a few summer hours.

Scrap paper poetry

Rainy day? No problem. Before you let the kids park in front of the idiot box — I mean TV — engage them in a game of scrap paper poetry. Each player writes ten random words on slips of paper. All the slips go into a hat, and each player draws ten out. The players then arrange the words, and no other words, into simple free-form poems.

This may sound a little silly, but kids have an innate sense of language and find great humor in atypical arrangements of words. This game won’t cost you a penny but could keep the little minds and hands occupied for an hour.

Super bubbles

Every kid likes to blow bubbles using those little wands. Do that traditional pastime one better by creating super bubble wands from old wire clothes hangers. Just bend them out into big circles or ovals, pour the bubble liquid (or dishwashing liquid) into a flat plate or pan, dip the wands in, and wave them in the air. Pennies spent, giant bubbles created!

http://www.fivecentnickel.com/2011/08/02/seven-frugal-ways-to-keep-your-kids-busy-this-summer/

IS IT TIME TO SWITCH TO A CREDIT UNION?

Times are good for credit card divisions’ at most major banks right now.  Credit card APRs have remained stubbornly high, only slightly off the peak reached in February 2010.  It is pretty amazing that despite record low interest rates the average bank’s credit card still carries a 13.5% minimum

APR.

  Credit unions provide a viable option for those fed up with the high rates. Here at SterlingVan Dyke Credit Union we currently have 12.9 % APR to transfer their credit card balances or for purchases on your VISA credit card.     

  We also have shared secured VISA for a 9.9% rate. If your rate is higher than this, now is the time to consider moving your accounts to the credit union.  We offer the same services as banks but we pride ourselves on member service. If you are looking to save money and keep more money in your pocket then now is the time to make the move.  

The Important Of Credit Unions Is Rising

Global CU membership climbs to 196M: WOCCU
http://www.cuna.org/newsnow/system.html#system070612-4


MADISON, Wis. (7/9/12)--The worldwide credit union movement added eight million new members in 2011, reaching 196 million members from 100 reporting countries, according to World Council of Credit Unions' (WOCCU) just-released 2011 Statistical Report.
 

Click for larger view

The annual study revealed that the number of members grew 4.3% from 188 million members reported in 2010, while the number of credit unions fell 3.5% to 51,103 in 2011 from 52,945 in 2010. The decline is an indication of the continuing trend of smaller institutions merging into larger credit unions worldwide, according to Brian Branch, WOCCU president/CEO.
 
"In countries around the world, smaller credit unions are merging to realize greater economies of scale and develop capabilities to deliver more services to members," Branch said. "The dramatic upturn in the number of members shows that credit unions are becoming more influential, and consumers are finding them to be better alternatives than many for-profit financial institutions."
 
Worldwide, credit union loans increased to $1 trillion in 2011 from $960 billion in 2010; reserves jumped to $141.3 billion from $131.7 billion; and global credit union assets grew to $1.6 trillion from $1.5 trillion. Savings volume declined slightly to $1.22 trillion from $1.23 trillion.
 
Global member penetration rose to 7.8% in 2011 from 7.5% in 2010.
 
This is the 40th consecutive year WOCCU has collected statistics on the international credit union movement. WOCCU reports data based on country responses to its annual survey and does not make estimates for non-reporting countries. The report, issued this year in electronic format, provides the most comprehensive data on the global credit union movement available and is cited widely by governments, international institutions and analysts as an expert resource, WOCCU said.




This blog is hosted by Sterling Van Dyke Credit Union. Sterling Van Dyke Credit Union operates with the utmost trust and loyalty to the benefit of its clients. Sterling Van Dyke Credit Union services anyone working or living in Macomb, Oakland or Wayne County, Michigan. Current residents, retirees receiving a pension or social security and immediate family members are eligible to join. Sterling Van Dyke Credit Union is owned and operated entirely by its member and strives to follow the purpose of the credit union as set forth in the bylaws.

10 Ways To Save Money When Borrowing Money

 

When people need to borrow money, they usually focus on how to get the money they need and often ignore the cost of getting that money. Borrowing money will usually entail paying for the borrowed money, but that doesn’t mean that saving money while borrowing isn’t possible. When you do need to borrow money, keep in mind these ten ways that you can save money when you do borrow:

Don’t Carry Balances

One rule of thumb for credit card users is to only charge what you know you can pay off. Of course, everyone has to put some charges on their credit card that they can’t immediately pay off. But if possible, you should try to pay off your balance each month. If you don’t, you run the risk of paying outrageous interest fees. Why would you want to pay more money when you’re already borrowing money?

Find the Best Interest Rates

Before you decide on any type of loan, look around to see who offers the best interest rates. Interest rates can be scarily high, so why would you choose a loan that had a 15% rate when you could instead choose one that might have a 7% rate? Always make sure you have a couple of options so that you can save the most amount possible when taking out a loan or signing up for a credit card.

Don’t Miss Payments

Missing a payment usually means you’re paying a late fee. Sometimes these late fees are only $30. Sometimes they’re 20% of your normal balance. Regardless of how much the late payment fee is, you’re still wasting money. Instead, save that money by always paying on time.

For Car Maintenance

If you’re driving an old or used car that’s constant in need of repairs, you might find that it’s more cost efficient to buy a new car. New doesn’t necessarily mean it has to be a recent model, but one that’s in better condition than your old car. Borrowing money to pay for a better car will save you money. Instead of having to pay hundreds or thousands every month or so, you can pay for a car that will instead last you for years.

Home Renovations

The housing market isn’t exactly booming right now, so borrowing to buy a new home might not be a great idea. If you’re looking to upgrade the space in your house, borrowing money to do so could turn into a smart investment. Using that money to add an extra room or two to your current house will help raise its value. This could pay off in the future, and the selling point could offset the amount you borrowed. Also, you’ll probably have to borrow less for a renovation than you would to buy a new house.

Special Offers

This is a rare example of how to save money when borrowing. Every once in a while a loan company or credit card will have a special deal that offers cash back when you borrow. For instance, a home equity loan company could offer a 2% lower interest rate than your current loan company if you switch providers. Sometimes credit card companies will have deals where you spent a certain amount at a certain store and receive a certain amount back. This method won’t always happen, but it worth it to keep an eye open for special offers that help you save money.

Remember That Borrowed Money Isn’t Free Money

A lot of people who borrow money tend to forget that it’s not free money. Just because your line of credit is large, it doesn’t mean you have to spend all that money, especially if you can’t pay it back. Additionally, don’t fall into the trap of requesting a loan for more money than you need. Doing this will lead to spending that money frivolously, which is an utter waste of money.

Don’t Get Conned by Bad Loan Products

Sometimes people sign up for the quickest and easiest loan, but this often results in them losing more money. Payday loans or car title loans are high-interest and short-term loans that are robbing you of your money. These are also loans that don’t fall under the “good borrowing” practice. They’re useless loans designed to make you pay twice as much as you would borrowing money from a traditional loan company.

Refinancing

Sometimes refinancing is the best option because after renegotiating your current loans and debt, you can lower the amount you have to pay. This is generally what homeowners do to manage their mortgage, as it saves them a lot of money in the long run. It usually means receiving a lower interest rate on your loan, which is never something you should turn down!

Read the Fine Print

Make sure you read over every aspect of your loan agreement. Sometimes there are hidden fees and rules in the fine print. Those hidden fees can range in price, but they’re usually charged for ridiculous reasons. Don’t get conned into signing up for a loan that charges fees you don’t need to pay. Chances are that even if you try to fight these fees, you’ll never get your money back if you’ve already signed the contract.

(Photo courtesy of quaziefoto)

Why It’s Important to Know How to Manage Your Money

By Dana O. Crandell,

In today’s electronically-oriented society, a surprising number of people never learn to create a budget, balance a checkbook or handle other everyday tasks to keep track of finances. Many of us are simply too busy with our fast-paced lives and believe we can’t afford to take the time. The fact is, though, it’s more important now than ever to know how to manage your money. The high-speed, digital society we live in brings new pitfalls to avoid and the old ones are still there, too. Let’s look at a few good reasons to know where your money is going.

You May Spot Theft Before It’s Too Late

It’s far too easy to become a victim in today’s world. Watch the evening news on any given day and you’ll probably hear at least one story about someone being robbed of their hard-earned money and/or identity. There are new risks around every corner and modern thieves use subtle, intelligent methods that are hard to spot. The best way to know something is wrong is to always know how much money you should have. Spotting discrepancies early means you have a better chance of finding out what happened and taking steps to correct the situation.

There’s Less Chance You’ll Pay For Someone Else’s Mistake

Banks make mistakes. So do creditors, stockbrokers, and cashiers. If you’re always aware of what should be happening with your money, you’ll see the red flags when something goes wrong. Were you charged an extra fee on your checking account this month? Is this month’s water bill significantly higher than normal? There are hundreds of ways you can lose money because of human or machine error. Unless you’re managing your finances, you may never know when it happens to you.

You’ll See Problems Before They Become More Serious

If you’re always aware of where your money is going, you’ll know when too much of it is going to a particular area. If you’re suddenly putting too much gas in the car, maybe it’s time to have it tuned up. Are the heating bills soaring while the temperatures are about the same? Maybe it’s time to check weather-stripping and change the furnace filter. Keeping abreast of your spending will give you a chance to nip potential problems in the bud.

You’ll See What’s Working For You

Managing your money also gives you the opportunity to identify your good investments. You may find that using one credit card pays better dividends than another, or that your recent changes to your checking account are saving you a few dollars a month. Knowing you’re improving your financial status is a good feeling. The best way to know is to see it for yourself.

You’ll Know Where You Have Room For Adjustment

If you’re budgeting and tracking your money correctly, you’ll know what changes can be made when a need arises. If there’s an emergency or any sudden change in your cash flow, you’ll have a better idea of what you can do to maintain stability. A little spending cutback here or there could help you avoid serious damage to your finances and reputation with creditors.

You’ll Improve Your Overall Security

By handling your money management tasks yourself, you limit the number of people that have access to your funds and information. That in turn reduces the risk that information or funds will find their way into the wrong hands.

Your Financial Status Follows You Everywhere

One of the disadvantages to living in the Information Age is the fact that your credit score and financial history are far from private. Those records can affect your buying power, your living accommodations, and even your job. If they’re that important to the people you deal with, it stands to reason that they should be doubly important to you.

It’s Easier Now Than Ever To Manage Your Money

On the positive side of living in today’s world, you have easy, convenient access to all the tools you need to manage your funds. Banking, buying and selling, stock trading and almost anything associated with financing can be handled online, from the convenience of your home or office.

Your Goals Will Be Easier To Realize

The simple, everyday tasks you perform to keep your finances under control will serve as a constant reminder of why you’re doing what you’re doing. You’ll be “keeping your eyes on the prize”, which we all know is the best way to win.

You Aren’t Going To Live Forever

This has always been one of the best reasons to keep your finances in order and it’s even more important today. Whether you’re raising a family of your own or still single, when you die, someone you leave behind will have to be responsible for the expenses associated with your death as well as settlement of your estate. It’s simply not fair to your loved ones to leave nothing behind but debts and it happens far too often – life insurance benefits only go so far.

No matter how small or large your bank account, managing your own money makes sense. It’s your future. Who better to build it than yourself?

(Photo courtesy of meddygarnet)

10 Reasons Credit Unions Are Better Than Banks

If you still have your money in a big bank, you may not be getting the most out of it. More and more people are moving their money from the big corporate banks into smaller credit unions for a variety of reasons. Here are some of the more popular ones:

Member Focused

The great thing about credit unions is that they’re not-for-profit, meaning that they’re owned by members and customers instead of by stockholders. Because credit unions are member focused, they offer more benefits and options for customers. Banks, especially large banks with multiple chains across a state or country, are focused on making a profit instead of helping the customer. Credit unions care about their members and try to give them the best possible products and services.

Better Service

One of the benefits of being member focused means that credit unions can provide better customer service. Large corporate banks are often impersonal and sterile. Since credit unions are smaller, employees tend to know their customer base by name and can provide them with services that accurately match their financial needs. Additionally, credit unions offer face to face interaction instead of automated systems. While automated systems might be great if you have a crisis at an odd hour of the morning or night, sometimes they can’t solve a problem the same way an in-person interaction could.

Bonus Programs

Since credit unions are not-for-profit, they’re allowed to offer customers bonus checks or bonus programs. The profit they make during the fiscal year isn’t shared with stockholders, so it goes right to the members! The offered bonus programs vary depending on the credit union, but they can include bonus checks, “money back” programs (where you receive money for spending money), or rewards programs for credit or debit cards.

Flexibility

Keeping in line with the benefits of being member focused and having better service, credit unions offer you more flexibility. Banks generally have a strict policy to follow when they offer loans, credit cards, or accounts. They’re less likely to overlook previous financial mistakes, even if you’re currently in good standing. Since credit unions are focused on giving the customer what they need, their guidelines aren’t as stringent as a bank’s. If you’re someone who has a troubled financial past or a less than exemplary record with money, a credit union will be more likely to overlook these issues.

Fewer Complications

Banks are all about enforcing strange rules, weird fees, and strict account guidelines. Fortunately, credit unions are about keeping everything simple. A bank might state that in order to maintain a checking account, you need to make at least ten purchases with a debit card or write two checks a month, or log into online banking at least once a week. Most credit unions offer accounts without any over the top guidelines. The terms are easy to follow and don’t inconvenience you.

Low or No Product Fees

If you currently use a bank, you might have noticed fees that suddenly pop up when you make a transaction. Or you might suddenly be penalized with a different fee for doing the same transaction you do every week. Banks are sly about inserting new rules or fees into their products, and they usually do it without informing their customer base. You won’t find these actions happening at a credit union. Most credit union products come without a fee, and if there is a fee (for a bounced check or overdraft protection, for instance), the price is usually significantly lower than what a bank charges.

Low or No Minimum Balance

Unlike banks, most credit unions don’t require a minimum balance to open or maintain an account. The ones that do require a minimum balance usually request a small minimum balance of between $5 to $50, which is a lot less than banks, who can sometimes request a minimum balance of $200 or $500.

Low Interest Rates on Loans

One of the benefits of being a small, customer owned and oriented business is that credit unions can offer lower interest rates on loans and credit cards. Many large banks make a significant portion of their money off of accrued interest, so it’s in their favor to hike up the interest rate. As they’re non-profit, credit unions won’t raise the interest just to make a profit.

Higher Interest Rate on Savings Accounts

Just as they can offer lower interest rates on loans, credit unions can also offer higher interest rates on savings, checking, and money market accounts. Interest rates at banks are usually around 2% or 3%, but credit unions typically offer at least twice that amount. Banks are in the business of making money, so they’re not interested in giving more of it away to you. As a non-profit organization, credit unions can’t keep any of the money, which means you benefit by receiving a higher interest rate.

You Save Money

The biggest reason why credit unions are better than banks is because you save money when you use them! With better interest rates and eliminated or reduced fees, you’re earning and saving more money. Banks are more interested in charging you fees for your products, but the customer oriented credit unions are more focused on keeping your finances happy.

If you haven’t checked out the local credit unions in your area, it is definitely worth taking the time to do so. What’s the worst that can happen? You might find a better place to keep your money.   Sterling Van Dyke Credit Union is waiting to help you achieve your financial goals.    Please give us a call.

The Need for Objective Reporting of Consumer Credit

The Need for Objective Reporting of Consumer Credit by Nicole Kellner-Swick

June 1, 2012, 9:00 am
Filed under: Fair Credit Reporting Act

By Tracy Schwotzer, Attorney

Consumer credit is an indispensible part of our society.  The average consumer relies on credit each day, not only for the financing of a business, house or car, but also for everyday purchases like gas and groceries.  In this country, these transactions would be difficult, if not impossible without the extension of credit to consumers, and the consumer report is a fundamental safeguard for businesses that extend credit.[1] 
Creditworthiness is used to determine whether a consumer qualifies for a loan, it determines the costs of insurance, and is often reviewed by potential employers.  Moreover, consumer reports are an important tool businesses use to make sure they extend credit only to consumers likely to repay the debt.  With the role that credit plays in our daily lives, the importance of a credit rating, either high or low, cannot be minimized.  The flip side, the decision to lend credit, receives less public attention but is equally important to maintain our current system of lending.
The credit rating system was developed to investigate and evaluate the creditworthiness, credit standing, credit capacity, character and general reputation of consumers.[2]   This consumer credit information is acquired, maintained, and distributed by Consumer Reporting Agencies[3]  and is governed by the Fair Credit Reporting Act (FCRA).[4]   The FCRA was adopted as part of the Consumer Credit Protection Act and has the purpose to “ensure fair and accurate credit reporting, promote efficiency in the banking system, and protect consumer privacy.”[5]   However, the needs for consumer protection must be balanced with the needs of the credit industry to manage its risk.

Banks, credit unions and other credit lenders depend upon complete and accurate credit reporting in their lending decisions.  “Inaccurate reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.”[6] 
Despite this importance, consumer reports are only a compilation of data and are not without errors, sometimes including inaccurate or outdated information.  To protect consumers, the FCRA establishes procedures for correcting those errors.  The most common route of challenging an item on a credit bureau is to dispute a specific item on the report.  Disputed information that cannot be verified must be deleted from a file.  However, a consumer reporting agency spokesman estimates that “at least a fifth” of the alleged “inaccuracies” being disputed are actually consumers attempting to have negative but accurate information removed from their report.[7]
Manipulation of consumer reports has also become an important bargaining tool in negotiations with the creditor.  A consumer may seek to have an account reported more favorably in exchange for repayment, or may request that the account be deleted upon settlement.
Removing negative information on an account, or deletion of the account as a condition for resolving pending litigation is not a settlement term to be taken lightly.  The deletion of the negative information will obviously boost a consumer’s credit rating and make them more eligible for credit.  While deletion of negative information may be a necessary tool in negotiating settlement of a dispute, the long-term cost to the industry as a whole is potentially devastating.  Without accurate information, a consumer may receive an undeserved credit limit, the interest rate may not accurately reflect the credit risk involved, and the terms of lending may be more favorable than the terms that would be otherwise justified by the consumer’s actual credit history.  By agreeing to deletion of negative information without a verifiable dispute, the lender has accomplished the short-term goal of resolving the dispute, but put the industry at an increased risk for flawed loans.
Finally, consumer reporting agencies are required to “follow reasonable procedures to assure maximum possible accuracy” of information on a report,[8]  and failure to do so is actionable.[9]   Thus, if more favorable reporting or routine deletion of otherwise negative information becomes commonplace in the industry, the consumer reporting agencies will be more wary of the information provided to them for fear of the liability for an inaccurate report.
Credit reports have recently been featured in the news and lenders will undoubtedly find themselves subject to increased regulations on how debts are reported.  For more information, see J. Riepenhoff and M. Wagner’s series in The Columbus Dispatch.

http://thatcreditunionblog.wordpress.com/2012/06/01/the-need-for-objective-reporting-of-consumer-credit/

Posted by Sterling Van Dyke Credit Union 

Credit Union Financial Exchange (CUFX) to Introduce Technological Standards to the Credit Union Industry

The CUNA Technology Council has recently launched a new integration standards project, CUFX (Credit Union Financial Exchange), to streamline how technology companies and credit unions connect applications like online banking and account opening into core systems.

Heather Moshier and Jeff Johnson, chair and vice chair of the CUNA Technology Council, presented an update on CUFX’s goals and recent progress to CUNA’s Board of Directors during a meeting at the most recent Governmental Affairs Conference.

“It’s a good time for this initiative,” says Bill Cheney, President and CEO of CUNA. “The board and I appreciate the Technology Council’s efforts to make improvements that will benefit the entire credit union industry.”

For credit unions to grow and remain competitive in the financial marketplace, they must continually improve their technical infrastructure. By introducing technological standards to the industry, CUFX will increase the speed of delivery of new solutions, improve user experience and credit union member satisfaction and reduce integration time and costs for application providers and core processors.

“Technology companies’ ability to innovate and quickly deliver leading-edge services is hampered by the lack of a single integration standard,” says Jeff Johnson, Vice Chair of the CUNA Technology Council. “Technology providers spend valuable resources independently customizing the same interfaces or adapters for each of their credit union clients, primarily at the expense of further refining their solutions. The standards proposed through CUFX free up more of their resources for innovation.”

Along with keeping credit unions and technology vendors on the same page, CUFX will benefit credit unions and the technology industry by:

• Simplifying integration and reducing initial and ongoing costs of independent vendor-provided and credit union-created offerings
• Increasing the speed of delivery of new business functions across the credit union industry
• Improving member experience and employee efficiency
• Freeing vendors from repetitive, time-consuming, low-impact customization, so they can focus their efforts on application innovation

Initially, CUFX will focus on new applications or existing transaction sets that support new initiatives, like PFM, membership applications and mobile payments. Building on these new key initiatives, a new standard will be iteratively created so back-end systems are speaking the same language. Future initiatives may include re-engineering existing transaction sets.

“Ultimately, the success of the CUFX initiative will depend greatly upon the dedication and commitment of our technology vendors and credit union professionals,” continues Johnson. “CUFX needs the resources, ideas and expertise that these professional bring to the table to ensure our strategic plans are on target and that our initiative proceeds in a direction that is both effective and beneficial for all groups involved.”

For more details about CUFX, a list of credit unions and technology companies that are currently involved, and information about how you can support the effort, visitwww.cufxstandards.com or e-mail info@cufxstandards.com.

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This blog was posted from alltop.com by Sterling Van Dyke Credit Union of Sterling Heights, MI 

Sterling Van Dyke Credit Union
39139 Mound Road
Sterling Heights MI 48310

THE RISKS RETIREES NEED TO BE AWARE OF

Are we prepared for retirement?   Recent figures from the Employee Benefit Research Institute reveal that 47% of Americans, ages 56-62, would run out of funds necessary to pay for basic retirement expenditures if they retire at age 65.  Six in ten Americans express significant concern about their retirement savings and investments.  So why are people so unprepared?  That is a good question and what do they need to be aware of for the future?

The way retirements are funded is rapidly evolving.

1)      The future of Social Security is in question.  Every day more more and more of the 78 million baby boomers approach retirement age.  The Census Bureau estimates that the ratio of people in their retirement years, 65 and older, versus those in their working years, 20 to 64, will rise from 20.6% to over 35% in 2030.  That will put a tremendous strain on the Social Security system.

2)      Pension plans are disappearing.  The traditional employer-sponsored pensions seem to be gone.  The number of defined pension plans being offered to employees has been shrinking steadily since 1980. Defined contribution plans, such as 401(k) s and 403(b) s are the new vehicles for retirement.  The problem with these plans is that these plans leave investors highly vulnerable to market volatility.  The burden of financing retirement is shifting squarely on the shoulders of individuals.  Adding to this burden are financial risks that make retirement today more challenging than ever.

3)      We are living longer.  Life expectancy has increased by more than 10 years and most experts see the trend continuing.  This means retirements could last more than 30 years or more.  Somehow we have to fund these extended years.  We will need an income source that can help maintain the quality of life we enjoy. 

4)      Rising costs are affecting our pocketbook.  Expenses in retirement will tend to keep rising.  We will have to find income to account for these increases. Specifically, there are three key cost related issues that can erode the purchasing power of retirees over time.  The first is inflation.  Most people underestimate the impact inflation can have on their standard of living in retirement.   Inflation can be a significant risk especially for retirees.  Basic necessities such as food, housing, transportation and utilities have risen at between 1% and 13% annually.  The second issue is taxes.  Federal taxes do fluctuate up and down.  According to the Tax Foundation, federal income taxes would need to double in order to close the deficit.  The last issue is healthcare.  Healthcare costs have risen 149% between 2000 and 2009-over four times greater than workers’ incomes.  Healthcare costs will likely continue to rise.

5)      Market uncertainty is posing a risk to financial security in retirement. Volatility poses one of the biggest threats to retirement savings because a downturn just before or after retirement can be devastating to an unprotected portfolio.  It could take years to recover from losses; precious time that someone entering retirement might not have.  One thing we need to do is to understand the financial challenges we have to face in retirement and address them.