2010 LifeWay Benefits Fair

LifeWay's Benefits Fair is in CL42 on Tuesday, October 12. We'll see you there!

Do homework before enrolling in a private college

As many Americans try to earn more education to get ahead in the tough job market, more questions are being raised about for-profit colleges. Accreditation issues and high student-loan debt are some indicators that may put up a red flag about a school (USAToday.com Sept. 29).

Many for-profit college students take on mountains of debt while in school. The Department of Education has proposed penalizing for-profit colleges whose students graduate with more debt than they can afford. Congress began a series of hearings this summer to investigate whether federal aid to for-profit colleges is being put to good use.

Protect yourself before enrolling to make sure you're getting what you're paying for in a private school, advises Michelle Dosher of the Credit Union National Association's Center for Personal Finance, Madison, Wis. Here's how:

• Check accreditation--Ask if specific programs are accredited and by whom. For job-specific training, ask if there are licensing or registration requirements beyond the earned degree and if the program prepares students to take any required exams upon graduation. Then verify the information.
• Check graduation, placement and retention rates--The National Center for Education Statistics, Washington, D.C., is a good place to start.
• Search for complaints--Most attorney general offices have consumer complaint divisions that log grievances against educational institutions. If not, state education departments should point you in the right directions. Searching the Web also can turn up information about lawsuits, scams, or accreditation issues.
• Find earning potential--You can find wage data from the U.S. Bureau of Labor Statistics. The Labor Department breaks down information by specific career and location.
• Talk to potential employers--Ask employers if they are familiar with certain private school programs and if they've ever hired its grads.
• Compare community colleges--Community colleges and public, nonprofit technical schools often offer programs similar to those at private schools--and typically at a much lower cost.

You can deal with overdue payments

Although the Federal Reserve reports a drop in total consumer credit card debt this year, it's actually a case of financial institutions writing off more delinquencies (Smart Money Sept. 21).

Consumers who have missed a payment can recover by considering these suggestions:

• Keep emotions out of it. It's best to put aside any feelings of awkwardness or embarrassment when a payment is delinquent--especially if they prevent you from taking action. When dealing with the lender, keep in mind that this is business, not personal.
• Seek help immediately. Don't wait. Consumers who find themselves falling behind should start by meeting with a nonprofit credit counselor. An experienced counselor can explain the options and establish a plan. To find a counselor, contact the National Foundation for Credit Counseling (nfcc.org or 800-388-2227) or ask for a referral at your credit union.
• Start a debt repayment plan. Settlement and bankruptcy are rough on a credit score. Consumers who can make their minimum payments should opt for debt management plans. Often, a credit counselor can negotiate a plan that employs a reduced interest rate and a realistic payment schedule.
• Avoid debt-settlement offers. In the past, debt-settlement companies have been a trap for consumers more often than a helpful service. Many of these companies charge large fees for services you can do yourself.

Save money with our home equity specials

Struggling under the weight of heavy expenditures, like home improvement projects, medical bills, tuition, or even a family wedding? A home equity loan from LifeWay Credit Union may be just the financial muscle you need.

A home equity loan gives you up to 90% of—you guessed it—the equity in your home. Since your house secures the loan, the interest rate is much lower than what you'd pay on a credit card or personal loan.

And the rate is even more competitive at your credit union than other financial institutions. Our variable rate home equity line of credit has an introductory rate of just 2.9% for the first six months, with terms up to 15 years.* And our fixed rate home equity loan has a rate of just 4% for up to 5 years.

Here's what makes our home equity loan such a smart way to pay off your big expenses:

·The potential for tax-deductible interest (consult a tax adviser)

·Low interest rates

·Personal service to help you match your goals with your budget

Why look elsewhere for a home equity loan when your credit union membership can get you the money you need, for less?

Call us today at 615-251-2089 and exercise your right as a member to lower borrowing rates. Your credit union membership could be the beginning of a whole new you.

* See loan officer for details

Job loss changes credit card usage rules

If you already lost your job or expect to get a pink slip in the near future, throw out some commonly held bedrock principles for using credit cards. Your No. 1 priority is to conserve cash (CreditCards.com Sept. 17).

In good times, the rules are clear: Pay credit card bills in full, or at least pay more than the minimum due. Use windfalls--tax refunds, bonuses, inheritance--to make extra payments and zero out existing balances as quickly as you can. Use credit cards for emergencies.

When faced with a job loss, the rules change. It's not a good idea to use credit cards as a fallback. If you've relied on credit cards because the equity in your home dried up, you already may be overextended. And lingering economic troubles could make it difficult to find another job--up to six months or more (Walletpop.com Sept. 20).

Follow these revised rules so job woes don't turn into credit card woes:

• Build an emergency fund first, then reduce card balances. When faced with the choice of saving vs. paying down debt, experts agree that beefing up your reserves--to at least six months of living expenses--takes precedence during hard times. At the same time, continue to make minimum payments on all debts: Draw up a budget and cut out or cut back on anything that's not necessary. Find spending leaks by tracking where your money goes each day. Stash the cash you save in an insured account. Obviously, building your emergency fund will be easier before you lose your job.
• Avoid late payments. The late payment fee is the least of your worries: Employers can look at your credit report before hiring you. If you're unemployed, missing payments, and your credit score drops, you're less likely to get hired.
• Drastically cut back on credit card use. You don't want your balances to balloon out of control if you're unemployed or think a layoff is looming.
• Don't use credit cards to prop up your lifestyle. The sooner you make changes to your spending habits, the less likely you'll wind up in credit trouble if your job search drags on for several months.
• Stop thinking of plastic as a financial backup plan. Card issuers can reduce your credit lines at any time, and new credit is not easy to get. Experts advise you use existing lines of credit wisely. Even a small increase in spending could trigger a review by some bank card issuers, and changes could result in higher interest rates or lower credit limits, which could hurt your credit score.
• Switch to cash when you can, but avoid cash advances. Pulling out cash makes you more conscious about your spending, but using cash advances will cost high interest rates and fees, leading to even more debt.

Finally, this rule holds true in good times and bad: Come clean with your creditors. Don't wait until you miss a payment. Call creditors and explain your situation--the advance warning likely will give you more leverage if you need to negotiate a payment plan. Ask if they'll temporarily lower your monthly payments and reduce interest. Do this before your situation becomes dire.

Act now for energy tax breaks

Act soon to save some green while going green. Energy tax incentive deals expire at the end of this year and it's unclear if Congress will renew them (msn.com Sept. 10).

Consider these tax breaks but be sure to read the fine print when making purchases. Not everything advertised as "energy saving" or "energy efficient" qualifies:

The nonbusiness energy property credit equals 30% of the cost of energy-efficient products. Qualifying products include energy-saving doors, windows, insulation, metal and asphalt roofs, water heaters, biomass stoves, and heating and cooling equipment. Basically you can spend up to $5,000 on single or multiple products for your principal residence that you own and live in and get $1,500 (30% of $5,000 = $1,500) back as a tax credit. This credit can be used in 2009 and 2010. If you got the entire credit in 2009, you can't get an additional break in 2010.

Shop carefully because not all products qualify. Check the Energy Star's website and ask for the manufacturer's certification statement that verifies the product qualifies for the tax credit. Be sure to check on installation costs; they aren't covered for all products. Projects must be completed by Dec. 31.

Use Internal Revenue Service Form 5695 to claim the credit. Remember to save your receipts, any contractor certifications, and the manufacturer's certification statement.

The energy efficient appliance rebate program provides an incentive to replace older, inefficient models. Each state and U.S. territory designed its own rebate program and a few already have used up allocated funds. Some rebates require preregistration with a mail-in rebate form; others provide a voucher to use at time of purchase. Check the U.S. Department of Energy (DOE) website for details. This site is the only official DOE-sponsored site; be cautious of fake sites.

Online car buying is growing

Will the car-buying process shift to the Internet in the next 10 years? That's the view of some analysts speaking with CNNMoney.com, which reported an increase in online car buying (CNNMoney.com Sept. 10).

Some large dealerships--Autonation, the country's biggest chain, and Sonic Automotive--are experimenting with upfront Internet pricing that serves as the initial point of contact for buyers.

Most consumers already use the Internet to window shop and gather information. But now more are completing the transaction online--hoping to avoid those dreaded face-to-face sit downs with a salesperson.

For consumers, the struggle between dealers and shoppers is shifting in favor of the buyer while dealerships, already faced with slim margins, look for a faster sales turnaround. The practiced online shopper can pit dealers against one another from home.

The appeal of online shopping is simple for consumers: There's less hassle. It's fast and convenient. Online car buying has become more streamlined and competitive, according to Edmunds.com. It has shopped online exclusively for its fleet-testing vehicles during the past eight years.

Michelle Dosher, managing editor of Home & Family Finance Resource Center and MoneyMix at the Credit Union National Association, Madison, Wis., offers this advice:

• Line up your financing so you can be a cash-paying customer. Shop around for rates, starting first at your credit union.
• Know exactly what you want to buy--the make, model, options, even the color.
• Avoid going to the dealership. Call, send an e-mail, or employ a car-buying website to get bids from competing dealerships. Ask them to send you a copy of the window sticker and the invoice price, which is what you are really after. You'll be surprised how many will do so when they know they are bidding against another provider.
• Don't fill out a credit application from the dealership before you have a firm price. Dealers use it to see whether you're a qualified buyer.
• Resist the temptation to go to the dealership before getting a firm quote. Remind dealers that other providers are meeting your request for a firm bid.

If you buy from an individual or through an unknown provider, Dosher also reminds online shoppers to beware of potential fraud.

Visit a loan officer at LifeWay Credit Union to discuss auto financing details.