Today the focus of KWMU’s St. Louis on the Air was financial literacy. Host Don Marsh was joined by three guests all working within the St. Louis community to increase financial literacy—Suzanne Gellman, Consumer Economics Specialist at University of Missouri Extension; Cassandra Kaufman, Director of Community Investment at the United Way of Greater St. Louis; and Yvonne Maldonado, Youth Specialist at Kingdom House.
The program covered many topics, including recent credit card legislation, teaching young children about financial responsibility, and much more.
To learn more about the panelists’ organizations, and to listen to the full program, CLICK HERE.
Yesterday in The New York Times there was an article about debt settlement companies. The article features one West Virginia family who used a debt settlement company to try to manage their thousands of dollars of credit card debt, only to end up with higher credit card balances than before. The company took around $4,000 from the family, but didn’t help them manage their credit cards at all.
During these tough economic times, we need to be aware of companies saying they’ll take care of foreclosure or credit card debt. Make sure you work with a non-profit counseling agency; for foreclosure help, the company should be HUD-certified.
If you or someone you know needs credit counseling, call United Way’s 2-1-1 Referral Service at (800) 427-4626–they’ll help connect you with trusted resources. You can also contact one of our partners, ClearPoint Credit Counseling Solutions, for help with credit card debt. If you think you may have been part of a fraudulent scheme, contact the FBI.
To read the full article from The New York Times, CLICK HERE.
The Federal Reserve Bank of St. Louis developed a website designed to keep the community informed about the financial crisis and what actions the Fed is taking in response to the crisis.
The website includes recent news, a timeline of events, articles about the crisis, frequently asked questions, and a glossary of important financial terms.
In this final segment from our January call-in program, the panelists talk about using home equity loans to pay off credit card debts—something they don’t recommend. Also, St. Louis resident Sue Livingston talks about how her home was saved after watching KETC. Ms. Livingston sought help from Beyond Housing and she wants people to know that it’s okay to ask for help.
A few days ago we posted the first of four clips from our town-hall call-in program that aired in January. In this second segment, Ruth Ezell talks to the panelists about credit cards—the dangers of using credit cards like cash, and the importance of understanding the terms of your credit cards. This clip also features information on neighborhood stabilization efforts and the proverbial American Dream.
Today’s tip features Dennis Johnson of ClearPoint Financial Solutions as he explains a universal default clause. This clause may be part of your credit card application, and it means your credit card company can monitor your credit history. So if you miss a payment with anyone, your credit card company can raise your minimum payment amount and/or your interest rate. It’s especially important to understand the terms of your credit card and to read everything your credit card company sends to you.
Tune into Channel 9 TONIGHT or watch the live-stream of Facing the Financial Crisis at 7:00pm CST.
Channel 9 producer Ruth Ezell and a panel of experts discuss the impact of the national financial crisis in our area and answer questions from the audience. A team of counselors and advisors from area nonprofit organizations will be on the phones to answer specific viewer questions and connect residents with local resources.
Welcome to a new category of postings on the Facing the Mortgage Crisis blog. The idea behind this series is to clearly explain what some of the names, terms, and words that keep popping up in the news mean. Lately, a lot of articles and interviews addressing issues that supposedly affect us all are using language that most of us don’t understand. Figuring out what these unfamiliar terms mean in everyday language has helped me make sense of what is going on, and hopefully can do the same for readers of this blog.
Liquidity: This term is used in reference to a couple of things when talking about the credit crisis. One is the liquidity of firms. This refers to whether a firm has enough easily accessible assets (cash, for example) to meet its obligations. A basic example of this is if a whole bunch of people go to their neighborhood bank to withdraw money, does the bank have enough to give them all the money that the bank has been holding for them? If not, they are insufficiently liquid. The other way that the term liquidity is used is in reference to assets. In this case, liquidity means that an asset can be easily sold because a) its value is known, and b) there are ready buyers and sellers. Right now, sub-prime mortgages are said to be illiquid, because there is uncertainty as to what they are actually worth.
“People are making assumptions that just certain kinds of people are in this position,” McCaskill said. “I think that people’s stereotypes kick in. I don’t think they realize that these distressed homes and families are all over the St. Louis area. From Chesterfield to South County to Warren County and St. Charles, there are homes facing foreclosure.”
McCaskill said the impact of the foreclosure crisis — which analysts predict could reach 3 million nationally — goes well beyond individual homeowners and is undermining the strength of the U.S. economy.
“There is this ripple effect that foreclosures have on the economy that we are focused on. This isn’t about a bailout for any individual. This is about what’s best for our economy so we don’t fall off the table into a full-blown depression,” she said.
“It’s hard for people because they’re used to operating within their lane. Can I pay my bills? And if I can pay my bills, why are we helping anybody who can’t pay their bills? This is not about staying in your lane. This is about our overall economic strength right now as a nation and the things we can do that help the credit markets stabilize, that help the dollar strengthen, that cut out some of the speculation in oil. All of those things need to happen, and this housing bill is just one part of that.”
McCaskill has sponsored a series of foreclosure clinics throughout Missouri, inviting nonprofit housing counselors, lenders and industry experts to share information and advice with homeowners who are concerned about their mortgages. The majority of those in attendance Saturday were the experts, which McCaskill attributed to the fact that many troubled borrowers are not comfortable attending a public gathering.
“What you don’t see in this room are the thousands and thousands and thousands of people who are just like you,” she said to the homeowners in the assemblage. “We estimate up to 20,000 homes in Missouri will face foreclosure before the end of next year. So, imagine if we had 20,000 people in this room what it would look like. You are not in this alone. There are thousands and thousands and thousands of others out there that have the same kind of challenges.”
Posted by lschwarze 
Posted by lschwarze 
Posted by lschwarze 
