Sharpen Your Financial Focus - Consumer Credit Counseling

CCCS of Rochester/RethinkingDebt Headquarters: 1000 University Ave, Rochester, NY 14607 **Spring 2016**
Sharpen Your Financial Focus
Inside this issue:
Sharpen results
1
By: Dominique Williams, Advisor
First Home Buyer
2
Summer Vacations
2
Building Credit
3
Ask CCCS
4
CASH Coach Program
4
The Sharpen Your Financial Focus program is a nationwide initiative of the National Foundation of Credit Counseling (NFCC) and broad cross-section of supporters who are committed to
increasing the financial well-being of Americans. As of January 2016, the NFCC and its member agencies have enrolled more than 60,000 clients in the Sharpen program, which debuted
in 2013. CCCS of Rochester has been part of the program since the beginning.
Researchers at The Ohio State University, member agencies and Experian gathered and analyzed data on program participants. The study found that Sharpen clients perform better on a
variety of credit outcomes, such as:
*Improvement in levels of revolving debt and total debt
*Better money management
In the Community
5
*Improved financial confidence
*Change in Credit Scores
Creating a Budget
5
*Change in Payment Delinquencies
According to the Sharpen Client Profile:
• 63% of Sharpen clients are female, with an average age of 43
• The median Sharpen client has reported $2,800 in monthly income, $10,000 in
liquid assets (such as housing equity) and no savings.
• The median amount of monthly housing and debt related expenses for clients is
around $910 and $1,000, respectively.
The main reason for seeking counseling was Financial Shock
• 63% of clients face a reduction of income due to a change in employment or job loss
• Almost 30% struggle with medical expenses or increases in debt payments driven
by higher interest rates.
• Many have a poor or declining credit score.
Based on the responses from the survey, Sharpen clients reported that the program is making
a positive impact in their financial lives just three months after counseling. If you haven’t taken
part in the Sharpen program, get started by visiting https://www.mymoneycheckup.org/
cccsofrochester with the MyMoneyCheckup financial evaluation or call our office at 585-5463440 for more information.
First Home Buyer Education
By: Andrea Colline, Outreach Coordinator
For many years, Consumer Credit
Counseling Service of Rochester
has offered a First Time Homebuyer workshop. Demand for this
workshop has increased over the
past few years. This workshop is a
requirement for First Home Club
members and we want to make this
requirement as easy possible for
our clients to obtain.
For your convenience, CCCS of
Rochester now offers an online
course for first time homebuyers.
This course is offered through EHome America and can be accessed through our website
www.cccsofrochester.org/firsttime-homebuyer-workshop.
counselors to issue your certificate.
Instructor led classes will still be
offered at our location at 1000
University Avenue in Rochester.
These in person workshops are
offered once per month on a Saturday and run 6-7 hours. A class
schedule can be found on our webThe fee is $79.00 after the use of a site– www.cccsofrochester.org/
events/calendar . You can register
coupon code CCCSHBE. The
course is offered in both English
for the workshop online or you can
and Spanish. The entire process
give us a call at 585-546-3440 to
takes 6-8 hours to complete and
schedule your workshop. There is
must be finished within 30 days
a $40.00 fee paid online prior to
once started. When completed, you attending or in person using a
will follow up with a brief conver- money order.
sation with one of our certified
Saving for Summer Vacations
By: Danielle Grasta, Client Support
During the summer, no one wants
to stay home. To ensure that you
will be able to enjoy your summer
to the fullest, here are some tips to
help plan ahead for vacations. This
is important so as to ensure that
you are not over spending on credit cards or getting behind on regular monthly bills.
extra funds, but rather tightening
Set a goal: First set a goal for
up your current expenses– cutting
yourself that will allow for sumout one cup of coffee per week or
mer fun within a budget. Then de- bringing your lunch each day.
cide how much you can set aside
out of each paycheck and how
If you are planning a vacation
many weeks this goal will take to away from home, it’s important to
achieve. Sometimes this can acplan for all of the possible expenscomplished without putting aside es, such as plane fare, hotel costs,
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food, activities and don’t forgetthe unexpected expenses! Once
you know how much you will
need, you can set up a savings
plan that will work for your budget.
If you are staying close to home
for the summer, look for options
that have little to no out of pocket
expense, such as visiting a park, a
beach or the zoo.
Look for discounts: Do not be
afraid to ask about possible discounts at your destination or
events, as you never know what
will be available.
Building Credit
By: Amy Holland, Advisor
Being in your 20’s can be an exciting time. For many people, it is the
first time experiencing independence from their parents. However, with
this increased freedom comes increased responsibilities, and managing
your credit is a major one.
It’s easy to be misinformed about how credit works, as well as how to
effectively build credit. Unfortunately, it’s one of the few subjects one
normally doesn’t learn about in school. Bad financial habits are hard to
break, so it’s good idea to educate yourself before these habits have a
chance to form. In this article, we’ll go over some tips on how to get on
the right track with your credit.
Check and Monitor your credit report
A good place to start is to first review your credit report. One way to do this is to pull a copy of your credit
reports on annualcreditreport.com. This site is free of charge, and you can access a copy of reports from
Experian, TransUnion, and Equifax once a year. It’s a good idea to review for any inaccuracies, and to see
if there is anything reported that you may be unsure of.
Secured credit cards and Installment loans
The first way to build credit is to obtain credit. A secured credit card is a great tool for people with a limited credit history. Many credit unions offer these cards to applicants with no credit or bad credit. A secured card is backed by a deposit from the applicant, which the credit limit is usually the same amount of
the deposit. The minimum deposit varies from bank to bank, but is generally at least $300. These cards
work similarly to a debit card, but report each month to the credit bureaus. The best way to utilize these
cards is to use them for smaller monthly expenses and pay them off each month when the statement comes.
Another way to establish credit is to get an installment loan such as a car loan or personal loan. Installment
loans are great because they have a set timeframe to be paid off, and when they are paid on time demonstrate that you are a reliable borrower.
Using Credit Wisely
Once you get credit, it is important to make your payments on time, as payment history accounts for 35%
of your credit score. Credit utilization is also a major portion of your credit score. Keeping your balances at
30% or less than your total credit limit helps your score. Avoiding applying for unnecessary credit cards is
also a good thing to keep in mind. Applying for new credit results in a hard inquiry on your credit, and can
bring your score down two or more points each time.
AmazonSmile
CCCS of Rochester is now listed as a charitable organization with AmazonSmile. AmazonSmile is the same Amazon you know. When first visiting AmazonSmile, customers are prompted to select a charitable organization from
almost one million eligible organizations. In order to browse or shop at AmazonSmile, customers must first select a
charitable organization. For eligible purchases, the AmazonSmile Foundation will donate 0.5% of the purchase price
to the customer’s selected charitable organization. CCCS of Rochester would appreciate being one of your choices
for this donation. To shop with Amazon Smile, visit smile.amazon.com and select Consumer Credit Counseling
Service of Rochester.
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Ask CCCS
By: Lynette Rieke, Advisor
service. As long as all your payments
are made on time, it won’t matter
who paid them and there is no scoring issue from that aspect.”
Question:
What will being on a debt management program do to my credit score?
Answer:
One of the questions the majority of
our clients ask is “how will a debt
management program effect my
credit score?” This is a great question! After all if your credit wasn’t a
concern, you most likely wouldn’t be
seeking our assistance to begin with.
The debt management program is a
structured plan designed to help pay
off your debt in an efficient and
timely manner. Many of our clients
are struggling to make minimum
monthly payments which can cause
them to fall behind and to receive
late fees which add to balances and
can negate the payments you are
making. Once your debt management plan is established, you begin
Typically, our clients notice improvement in their score within the
first year they are on the program
and by the time they make that last
payment, they experience relief and
pride in seeing what they’ve accommaking more consistent on time pay- plished to help improve their credit
ments to your creditors therefore
and ultimately their future. For more
helping to improve your credit score. information, call our client support
Experian says: “The impact on your department at 585-546-3440 to
schedule a free consultation. You
scores may be minimal, depending
can also read more by visiting the
on how the payments are managed
websites below:
and if you have other positive accounts. The most important thing is www.experian.com
that you must make sure that the
company will immediately take over Or
the payments so that you never miss www.cccsofrochester.org
a payment in the transition to their
C.A.S.H. Coach Program
Consumer Credit Counseling Service
of Rochester is happy to announce
we are now accepting applications
monthly for the C.A.S.H. Coach
Program. We partner with the
C.A.S.H. Coalition (Creating Assets,
Savings and Hope) to offer this free
financial coaching program. The program provides confidential one-onone and group financial coaching to
help participants reach financial
goals that will help to improve money management skills, savings, debt
repayment and credit scores. Visit
http://www.empirejustice.org/
cash/cash-coach-program/ to lear n
more.
Successful graduates of the Coach
Program have increased their credit
score, paid down debt, opened and
maintained savings accounts, and
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•Participants: to lear n mor e,
and apply, visit: http://
www.empirejustice.org/cash/cashcoach-program/participantinformation/
If you have any questions or find that
clients are unable to view our online
information and application, please
gone on to reach other financial and
feel free to contact Tracy Merlau at
life goals such as purchasing a home
295-5733 or at tmeror new vehicle!
[email protected].
Applications are being accepted for
participants and volunteer coaches!
•Volunteer Coach: to learn more,
and apply, visit: http://
www.empirejustice.org/cash/
volunteer-intern-opportunities/coach
-program/
CCCS in the Community
By: Stacey Walker, Advisor
Our employees like to make a difference in the community.
how citizens benefit from and contribute to a community’s success.
One of our advisors, Stacey Walker,
Junior Achievement (JA) is the larghad the chance to volunteer at Wilest organization dedicated to educatson Foundation Academy. She
ing students in grades K-12 about
taught 2nd graders 5 sessions about
entrepreneurship, work readiness and
being in the community and how we
financial literacy through experiencontribute to the community daily.
tial, hands-on programs designed to
The topics included careers, product
help young people understand the
creation, innovation, taxes, governeconomics of life. In partnership
ment, money, business and decision
with businesses and educators, JA
JA Our Community introduces stu- making. Stacey and the students had
brings the real world to students,
dents to the intersection of work
a lot of fun doing different activities
opening their minds to their potenreadiness and early elementary social each week for 5 weeks.
tial.
studies learning objectives, including
Creating a Realistic Budget
By: Jeana Breakingbury, Advisor
People from all different demographics often struggle when it
comes to making a realistic budget.
However, the importance of creating a budget cannot be overstated.
Creating a budget allows you to see
how much money you have coming
in and going out of your household.
It also helps you to avoid overspending. There are times when it
may become necessary for someone Gather your 2 most recent pay
stubs, bank statements and monthly
to revisit their budget.
bills. You can use a check register
• A life changing event such as mar- or access to your computer to reriage or the birth/adoption of a child view transaction history.
• Loss of a spouse/family member
• The feeling of constantly running
out of money by the end of the
work week
• Change in employment
When creating your budget, use a
journal/note book or a software application to get started. Start with
financial goals that are realistic and
financially attainable. (Savings,
retirement, car, home, vacation,
college, etc..)
Establishing a budget can be done
through a three step process.
Step One: Total up all your
monthly income. Make sure you are
including any variable income such
as commissions, bonuses, alimony,
child support and summer job income
payment, insurances, child care,
etc.…
Variable: Lunches, entertainment,
gift giving, personal care, clothing,
etc.…
** You may need to monitor your
expenses for a month or two to get
a good grasp on your spending
habits. Saving receipts or using a
mobile app to track daily and weekly expenses might be helpful.
Step Three: Subtr act your expenses from your income. Don’t
forget to include your financial
goals
**If you have a deficit, review your
expenses and look at where you can
trim or you may need to increase
your income.
Regardless of life changing events,
people should reevaluate their
Step Two: Wr ite down all of your budget on a regular basis.
monthly expenses
For more information, contact
CCCS of Rochester at 585-546Fixed: Housing, heat/electric,
phone, cable, internet, groceries, car 3440.
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This newsletter is a publication of CCCS of Rochester/ RethinkingDebt, a Not-for-Profit agency. It is a source of information for
clients, sponsors, representatives of the credit industry, and the service networks supportive of our mission and vision.
Headquarters:
1000 University Ave., Suite 900
Rochester, NY 14607
Phone: (585) 546-3440
Fax: (585) 546-5693
Toll Free- (888) 724-2227