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Dear Friend of Arizona Saves,
Welcome to our premier issue of the Arizona Saves electronic newsletter.
This newsletter will keep you up-to-date on our:
- upcoming financial education schedule
- volunteer opportunities
- financial news and more
It is also a place for our partners to contribute tips on savings, articles on finances, and news of their own.
The Arizona Saves e-newsletter features participant success stories that detail how our workshops or wealth coaching resources have helped residents manage their finances and build savings.
Sincerely,
Patrick Jordan
Executive Director
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Seven Tips for Improving Credit, June 2008
by Jennifer Quillin, Assistant Director
Your Credit Score is more important than ever! It determines the interest you pay on your credit card and other loan products.
Do you know what your credit score is? In the wake of the foreclosure crisis, lenders are tightening up their guidelines. In the past, a score of 620 would qualify you for a loan at a good interest rate, but today that number is more likely 720.
Good credit is a tremendous asset and when maintained properly, it can provide you with financial freedom and save you money. In our current economic crunch, maintaining good credit can be difficult, especially if you "charge" expenses that you would normally pay cash for. If your credit score is less than 720, there are many things you can do to improve it. The following tips from Arizona Saves Wealth Coach experts can help you regain control and improve your credit score.
1. Review your credit file. Request a free copy of your credit report, at www.annualcreditreport.com. The free report is the history of your credit, and you will need to pay extra for the credit scores.* Be sure to verify that your accounts are being reported accurately. According to creditreports.com, 1 in 4 of credit reports contain some errors. Review your report to make sure all items are being reported correctly. Reviewing your report is also a good way to spot identity theft.
2. Develop a Financial Action Plan: Before you can concentrate on improving your credit score, you must become financially stable. Sit down and list your income and expected expenses for the upcoming month (a spending plan) and decide where to eliminate unnecessary expenses. Start making consistent monthly deposits to an Emergency Savings account. (Go to www.arizonasaves.org to begin saving today! Click on the "Enroll Now" tab to become an Arizona Saver and get help and support in meeting your savings goal.)
3. Develop a Credit Action Plan: After reviewing your credit report, create a plan to increase your credit score. You can do this by understanding the 3 major factors that drive credit scores: (1) To increase your score, you must not have any late payments reported over the next 12 months. Resolve to begin making on-time payments on each active account. (2) Pay down credit card balances to less than 40% of the high credit limit. When credit card balances decrease, credit scores increase. If you are "maxed-out" on your credit cards, your credit score will suffer. (3) If you have unpaid collections that were incurred in the last 2 years, contact the collection agency to negotiate a pay-off and then follow-through on that payment plan. (Talk to a credit expert before paying off collections older than 2 years. You are still responsible for this debt, but these need to be handled in a special way.)
4. Be Patient: While most credit scores do not change more than a few points from month to month, time still cures less-than-perfect credit. Generally, it takes about one year of on-time payments to improve your credit score.
5. Open a Secured Credit Card account. A secured credit card is a good way to raise your credit score, especially if you don't qualify for a regular credit card. If you don't have at least one or two creditors reporting on-time payments on your report, consider opening a secured credit card. Essentially, you give your financial institution $300-500 as collateral to secure the credit card. You make charges on the card like any regular credit card. After a period of time (usually one year) the financial institution refunds your "security" collateral. Use it, make timely payments, and eventually the account will no longer need to be secured by your savings. Be sure to shop around before opening a secured credit card account as the fees and interest rates can vary dramatically. You must be disciplined! Credit is not an extension of income! Ask your bank or credit union about secured credit cards, or do some research at www.bankrate.com.
6. Contact an Expert. Contact Arizona Saves at 602-246-3506 and ask for a Wealth Coach or register for one of our free financial education workshops. If you are experiencing a severe economic hardship, consider contacting Consumer Credit Counseling Services (CCCS) at www.moneymanagement.org or 1-866-515-2227 for 24/7 credit counseling by telephone and internet. If you might be in the market to purchase your first home in the next few years, contact a Housing Counseling agency and ask for help. A housing counselor can help you establish a budget, assist with creating your action plan and eventually become debt free while you prepare for home ownership. Go to www.arizonahcc.org for assistance in locating a certified housing and credit counselor.
7. Keep a Positive Attitude. The good news is bad credit does not need to haunt you forever. However, there are only two cures for bad credit: time and money. Time will cause older derogatory credit to affect your score less each year, and money to pay down debt and pay off collections. The Fair Credit Reporting Act (FCRA) states derogatory information can only remain on your credit bureau file for seven to ten years. Visit www.ftc.gov for more information.
So start today: you can regain control in the next 12 months and take immediate action towards improving your score.
*Credit Scores from www.annualcreditreport.com: This is the only official, government-sanctioned website to obtain a free credit report. Don't be fooled by similar sites that try to sell you credit monitoring or credit protection. When you order your FREE report, it is only a report that shows you the history of your credit, but does not include your credit score. The www.annualcreditreport.com website does have a section of the site that you can pull credit scores from each of the three credit reporting bureaus. When you pull your credit report, it's important to request your score so you'll know what your score is now. The cost is about $7 per bureau.
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Kids Saves Volunteers Become Financial Education Pioneers
by Veronica Loper, AmeriCorps *Vista
At Goodwill of Central Arizona's e-cademie High School, a group of teenagers are busy discussing how to budget for their monthly wants and needs. Leading the class in discussion are Arizona Kids Saves' volunteers Frank Woertz and Judy Aguilar-Woertz. In June, the husband and wife teaching team began to teach teens the importance of financial planning during the high school's summer school program.
"Financial education is important for everyone," Aguilar-Woertz said. "We are just catching teens early and preventing problems many adults face as a result of not being able to manage money."
One of Arizona Saves active board members inspired them to get involved with the Kids Saves program.
"Kathey Wagner from State Farm introduced us to Arizona Saves. The curriculum goes hand in hand with what we are trying to do with our clients," said Aguilar-Woertz, who is a certified financial planner and has been at State Farm Insurance for 30 years.
She was drawn to volunteer at Goodwill of Central Arizona's e-cademie High School because one of her long time clients, Arturo Ortiz, is the superintendent. The charter school is different from a regular public high school in that it offers custom-designed curriculum to meet the student's needs. A small campus, free meals, mentoring programs and job placement assistance are offered at both of e-cademie's campuses which are located at 417 North 16th Street and 3160 North 33rd Avenue.
Aguilar-Woertz said that her teaching experience has been extremely worthwhile way to give back to the community.
"We are making a difference in their lives," she said. "Seeing the lights in their heads go on as they get basic financial concepts is the most rewarding aspect about being a Kids Saves volunteer."
The workshops at e-cademie High School are the first Arizona Kids Saves workshops to be offered in a traditional classroom setting during regular school hours. Since the courses have been successful, they will serve as a work in progress model for similar workshops in the future.
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Save the Dates!
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FINANCIAL EDUCATION WORKSHOPS
South Mountain Community
Center
212 E. Alta Vista Rd.
Phoenix, AZ
Dinner 5:30pm, Class 6-7:30 pmJuly 15 - Banking Basics
July 22 - Building a Better Budget
July 29 - Choosing & Using Credit Wisely
August 5 - Taking Charge of Your Credit
Crisis Budget Workshops
Sponsored by NeighborhoodHousing Services of Phoenix
Crisist and Foreclosure Prevention
July 24 - 6:00pm - 7:30 pm
August 16 - 10am - 11:30 am
August 19 - 6:00pm - 7:30 pm
Aug. 21 - 6:00pm - 7:30 pm
Central Arizona College Small Business Development Center
540 N. Camino Mercado, Suite 1
Casa Grande, AZ
Dinner 5:30pm, Class 6-7:30pm
July 30 - Banking Basics
August 6 - Building a Better Budget
August 13 - Choosing & Using Credit Wisely
Piuate Neighborhood Center
6535 E. Osborn Rd.
Scottsdale, AZ
Adults & Kids Ages 6-18!
Dinner 5:30pm, Class 6-7:30pm
August 13 - Building a Better Budget & Banking Basics (Spanish)
August 20 - Taking Charge of Your Credit (Spanish)
August 27 - Purchasing a Home (Spanish)
Sept. 10 - Buiding a Better Budget & Banking Basics
Sept. 17 - Taking Charge of Your Credit
Sept. 24 - Purchasing a Home
PWC One-Stop Comprehensive Career Center
3406 N. 51st Avenue
Phoenix, AZ
Adults and Kids ages 6-18!
Dinner 5:30pm, Class 6-7:30pm
Sept. 11 - Building a Better Budget & Banking Basics
Sept. 18 - Taking Charge of Your Credit
Sept. 25 - Preparing to Purchase a Home
Sunnyslope Family Services Center
914 W. Hatcher Phoenix, AZ Adults & Kids ages 6-18!
Dinner 5:30pm, Class 6-7:30 pm Oct. 2 - Building a Better Budget & Banking Basics
Oct. 9 - Taking Charge of Your Credit
Oct. 16 - Preparing to Purchase a Home
Additional workshops in development:
TRAIN THE TRAINER EVENTS
Horizon Human Services
210 E. Cottonwood Lane
Casa Grande, AZ
July 11, 2008: 10am-4pm
Curriculum: Choosing & Using Credit Wisely, Taking Charge of Your Credit, Banking Basics, Building a Better Budget
Phoenix
February 2009: 8:30am-12pm
Curriculum: Choosing & Using Credit Wisely, Taking Charge of Your Credit, Banking Basics, Building a Better Budget
Verde Valley
June 2009: 10am-4:30pm
Curriculum: Choosing & Using Credit Wisely, Taking Charge of Your Credit, Banking Basics, Building a Better Budget
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Quick Links for Volunteers
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Quick Links for Funders & Partners
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Arizona Saves Quarterly Success Story
By Veronica Loper, AmeriCorps* Vista
Before attending the financial education workshops in January 2008 Arizona resident, Charlinda Begay, was dissatisfied with her level of knowledge about personal finance.
"It was bad. I didn't know how to save money," Begay said.
Begay, who is Native American, said she learned about Arizona Saves' financial education workshops as a participant in the City of Phoenix's Family Self-Sufficiency Program. As a young mother of two, student, and full-time hospital employee she realized that taking control of her financial situation would drastically increase her quality of life. Begay said that she decided to attend the workshops because they were highly recommended by the city of Phoenix and seemed like a great learning opportunity.
The classes she attended were held at Hope VI Community Center and included Banking Basics, Building a Better Budget, Choosing and Using Credit Wisely and Preparing to Purchase a Home. The courses proved worthwhile and gave Begay helpful information on how to save money, understand credit, and decipher between wants and needs while shopping.
"I learned how to clear up my credit, which I am working on now." Begay said "I learned how to look up my credit score and manage my debt."
She credits Arizona Saves for her new found financial awareness. After attending the workshops she feels more in control of her financial situation. She is changing habits that have kept her from achieving her financial goals.
"Arizona Saves helped me to get a formal education on spending and saving. It motivated me to use my money more wisely and have a long-term savings plan," Begay said.
She continues to practice the financial skills she learned at Arizona Saves' workshops in her daily lifestyle. Currently, she is working towards her savings goal of buying a home. She said she now budgets for necessities as well as leisurely activities.
Begay said that in the future, "I want to take my kids to Disney World and I am going to start saving on that now."
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Announcements & Updates
Volunteering for Arizona Saves just became easier. We implemented a new Volunteer Information Center to provide easier communications between Arizona Saves and its volunteers. To sign yourself into the system please go to the Volunteer Info or contact our volunteer coordinator, Lauren Brandt, at info@arizonasaves.org or 602.246.3506.
Lauren Brandt
Arizona Saves now has embroidered shirts for volunteers!! Prices start at $23.50. Please contact Veronica Loper at info@arizonasaves.org or 602.246.3507 for more information.
Arizona Saves will be a featured guest on Channel 12's Arizona Midday show!!The program will air live Monday, July 14th from 1-2pm.
Arizona Saves, in partner with the United Way of Pinal County, is hosting a Train the Trainer event on July 11th in Casa Grande. The event is perfect for anyone who would like to become an adult financial instructor or refresh their teaching skills. The training will include a presentation on Adult Learning Techniques and our 4 primary workshop sessions: Banking Basics, Building a Better Budget, Choosing and Using Credit and Taking Charge of Credit. Seating is limited to the first 40. To register, please contact Ricardo Banuelos at vista@unitedwayofpc.org or 520-836-0736.
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