Third Quarter 2006
Is Bankruptcy The Answer?
The television and newspaper ads seem very convincing: Debt got you down? Walk away and start fresh by filing for bankruptcy. What they don't tell you - or at the very least gloss over - is that bankruptcy is a very serious course of action with grave and long-lasting consequences. A bankruptcy will become part of your public credit history for 10 years and will hinder your ability to get any type loan, whether secured or unsecured, or even rent an apartment. And despite what the TV ads say, it's becoming more difficult to completely erase your debt with the new bankruptcy laws that went into effect October 2005. If the bankruptcy court decides that you have the financial means, you will be required to repay at least part of your debt. Will your attorney care? Not as far as your legal expenses are concerned. He or she will still charge you the full amount to process your bankruptcy, which can easily cost you $1,000 or more. If you feel you are in financial trouble, your credit union believes your best move is to negotiate your debt with your creditors, either on your own or through a nonprofit debt negotiation service. In many cases, you can get your monthly payments lowered, your interest rate reduced, or both. Ask the Credit Union for a referral to a nonprofit debt negotiating service or consult your business phone directory. Avoid companies that charge you a fee for debt negotiation, which puts you further in debt. Nonprofit debt negotiators, such as Consumer Credit Counseling, are typically paid for their services by your creditors. Then, we urge you to seek financial counseling and/or education through any number of community organizations. Getting out of debit requires not only taking care of the immediate problem (too many bills) but also educating yourself about finances so that it doesn't happen again. If you feel you are buried in debt with no hope of ever seeing the light, please call or stop by PVFCU today for a free evaluation of your situation. Let us help you see what you can do about it. In most instances, your problems can be solved without resorting to bankruptcy.
A Loan You Can Manage
If you're looking to start a credit history or rebuild good credit, a Share Secured loan from PVFCU may be just the thing. By using your share account (or other savings account) as collateral, you are entitled to borrow up to the amount in your account. You can borrow all the money in one lump sum or access funds as you need them with a Share Secured credit card. The credit card is a favorite among members who want the convenience of a credit card for emergency or travel, while at the same time knowing they can't go overboard because the credit card has a predetermined limit. Because these loans are guaranteed by your savings, the interest rate is very reasonable and lower than the rate on an unsecured loan. Meanwhile, the funds in your savings account continues to accrue dividends, in effect lowering the interest rate you pay on the loan. About the only downside to a Share Secured loan is that your savings is committed during the term of the loan and is unavailable for use until the loan is paid or the credit card account is closed. So remember not to lock up savings that you may need in the immediate future. However, a Share Secured loan (fixed loan or credit card) may be the perfect way to achieve your financial goals while keeping your debt in check. Call or stop by the Credit Union today for more information.
Travel Tip
If you are traveling and need your mail collected while you are away, let your post office do it for you. Your local post office will hold your mail for 3 to 30 days at no charge. The post office will resume normal delivery of your mail on the date you specify. Making arrangements is quick and easy on the USPS's Web site (www.usps.gov), or you can call 800-ASK-USPS.
BOARD OF DIRECTORS
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Milton Fredricksen, President Norman Schaffner, Vice-President Gary Friestad, Treasurer Ernie Sanchez, Secretary Rochelle Wisdom, Director
Put The Power Of Your Home To Work
Is it time to put that new addition onto your home? Do you need a new vehicle? Would you like to consolidate some of those nagging credit card bills? You can do all of that and more with a home equity loan from your credit union. If you've lived in your home even for just a few years, chances are you've built some equity (the difference between what your home is worth and what you owe on the first mortgage). You can use that equity to buy needed items, take a vacation, or pay off other high interest rate loans. The interest rate on a home equity loan is very favorable because the loan is secured by your home. And, in most cases, the interest on a home equity loan is tax-deductible, which saves you even more money. If a home equity loan sounds like the solution to your needs, call or stop by PVFCU today and let us help you put the power of equity to work for you.
CREDIT COMMITTEE
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James “Eddy” Cheneweth III,
Chairperson
Priscilla Cespedes Lorraine Villegas Steve Grady
SUPERVISORY COMMITTEE
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Gary Friestad, Chairperson Roger Reyes
CREDIT UNION STAFF
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When adding all the expenses for a vacation (air travel, hotel, food, and attractions), it's easy to just say "charge it" and put it on the credit card. Let your credit union suggest a more sensible alternative: Apply for a vacation loan and save the credit card for emergencies. With a credit card, your vacation gets rolled into other purchases, and if you make only partial payments, you're never sure when you're finished paying for that vacation. With a vacation loan, you pay fixed payments on a fixed amount, and you know when you're done paying for it. Also, the interest rate on your loan is lower. Don't get us wrong; you should take your credit card with you on your vacation. In certain instances - like renting a car for example - a credit card is a necessity. But don't use the credit card to float the whole vacation cost. If you've got the money saved for the trip, that's great. But if you need to borrow the money, stop by or call PVFCU today and let us help you with a vacation loan.
John G. Pressler, CEO Theresa Lewis, Operations Supervisor Gerald Schaffner, Accounting Janice Pressler, Loan Supervisor Gerly Abarro Arlene Subarich
New Accounts / Loans
Get Low Cost Travelers Checks
If you and your family are traveling this summer, consider purchasing travelers checks from your credit union. They are accepted the same as cash at most hotels, restaurants, gift shops, theme parks, etc. Some say that debit cards and automated teller machines (ATMs) have rendered travelers checks unnecessary. We, at the credit union, disagree and say that travelers checks still have their place when traveling. Travel experts agree that carrying large amounts of cash is dangerous. Whether in your pocket or stashed in your purse or a piece of luggage, cash has all sorts of opportunities to get lost or stolen. You should always carry a small amount of cash (between $20 and $50) for incidentals such as vending machines, tips, snacks, and small purchases. But for purchases of $50 or more, travelers checks are the ticket. Better to play it safe. With travelers checks, you are protected. Help is just an 800-number phone call away, with replacement usually in 24 hours or less. Checks are available in varying denominations, and the cost is very low, especially when you consider the protection, convenience, and peace of mind that they offer. Stop by Paradise Valley Federal Credit Union before you take off on that vacation and ask about purchasing travelers checks.
Carolina Enriquez Cindy Layon Diana Pascua-Jones Marcella Avitia Erminda Reque Sinann Kinney Janine Diolata Pat Fuson
Member Representatives
Preparing For A Natural Disaster
The year 2005 was a painful reminder for thousands of Americans on how disaster can strike at any moment, and a reminder of how help from local, state, and federal authorities can often be days or weeks away. Paradise Valley Federal Credit Union wants you to be prepared for disaster so that you can survive for a few days and up to a week, if necessary, should a natural disaster (flood, fire, earthquake, etc.) disable basic resources such as water and electricity. • Water. Experts agree the average person requires 3 liters (a little over 3 quarts) of water daily to stay sufficiently hydrated. You can do the math, but as an example, a family of four preparing to stay self-sufficient for five days would need 60 liters (about 16 gallons) of drinkable water. Most experts recommend buying bottled water that has been vacuum-sealed against bacteria and the elements. • Food. You should have on hand a supply of canned and dried foods representative of the four major food groups: grains, vegetables, fruits, and meat. Add dairy, if you have family members (infants, small children) who need milk. Powdered milk, while not the most palatable, can be stored for long periods and fill the bill. If your food requires cooking, make sure you have a portable stove and sufficient fuel for it. If you have dried food, you will need to calculate for extra water. • Electricity. Keep on hand, at a minimum, two or three flashlights and a battery-operated radio. Keep sufficient fresh batteries to operate these devices for several days and up to a week. • First aid. At a minimum, stock a basic first aid kit to take care of minor problems such as cuts and other wounds so that they do not become infected. If possible, keep all this material together in one place. A basement is a good location, or if you don't have a basement, an interior (no exterior walls) closet or space on the lowest floor of your home. You should check your store of survival goods at least twice yearly to make sure all articles work properly and that food/water is consumable. Beyond that, disaster planning can become as elaborate as you want or need it to be, depending on your specific situation and comfort level. A number of books are available at stores and the library if you feel you need a more sophisticated plan. But the basics, outlined above, should get you through most situations long enough for help to arrive.
Tame Those Bills
The electric bill arrives. It gets waylaid into a pile of papers where it sits for two weeks before you notice it again. Your payment is now late, and you get hit with a late fee. Sound familiar? Are you tired of writing checks, buying stamps, driving to the mailbox and, yes, paying the occasional late fee because you missed the payment deadline? Then try Online Bill Pay from PVFCU. All it takes is a few minutes to set up your list of creditors and establish a user ID and password for you to access your account. After that, all it takes is a few mouse clicks to pay your bills. If your bill payment is the same each month (for example, your mortgage or cable TV service), you can set up your account to automatically pay the same amount on a set date each month. With variable bills, your account lets you enter the amount to be paid. Sound easy? It is. You do not need to be a computer expert to pay your bills online. Once you have your account set up and have a few months' experience clicking your bills paid, you'll wonder why you didn't do this sooner. And the best part is the cost: It's free for the first two months, then only $2.95 per month therafter. Call or visit the Credit Union today and let us show you how easy it can be to pay your bills.
Start Smart This Fall
Back to school is big business. Last year, school related merchandise had a $13 billion price tag, with families reporting spending some $375 per child on clothing, shoes, electronics, and school supplies. And, that bill could jump even higher if those purchases are charged to a department store credit card carrying a 21, 22, even 23 percent interest rate. So before your kids head off to school, head PVFCU where you will find low rates on loans. With a loan from the credit union, you'll have cash in hand. That makes setting and sticking to a budget easier. It also means you can shop around for the best values on clothing and the other supplies your kids need to start smart this fall.
What's A Hybrid? Why A Hybrid?
A hybrid is a car that combines two or more sources of power. In most cases, that means combining a gasoline (or diesel) engine with an electric motor. The point of a hybrid is to reduce fuel consumption and exhaust emissions. How? Mainly by using a much smaller and more efficient gasoline engine and pairing it with an electric motor that can kick in when more power is needed, for example, accelerating onto a freeway or climbing a hill. In addition, the gas engine can be shut off at times when it isn't needed for propulsion - idling in a traffic jam or at a stop light. When it's time to go, the electric motor gets the vehicle underway, then the gas engine turns on to get the car up to speed. The electric motor also acts as a generator. The motor helps brake the car, and in so doing, captures energy and converts it into an electrical current that is fed to the batteries. Most hybrids also use other methods to improve efficiency - a low-drag aerodynamic shape, lightweight materials, and low rolling-resistance tires. Although hybrids are increasingly popular, they're still a tiny percentage of all cars sold. Of the 17 million cars sold in the U.S. in 2005, only 200,000 were hybrids (1.2%). But automakers are predicting sales of a million hybrids a year in the U.S. by 2008.
(as of 5/31/06) Regular Shares Share Drafts IRA’s $100 to $4,999 $5,000 to $9,999 $10,000 to $24,999 $25,000 to $49,999 $50,000 to $99,999 $100,000 + Certificates
2.01% APY 0.76% APY 2.02% APY 2.27% APY 2.79% APY 3.05% APY 3.56% APY 3.82% APY Call
Assets Shares Loans Members Accounts
(as of 5/31/06) $55,709,000 $47,744,000 $44,913,000 5478 7904
Monday-Thursday Friday Saturday-Sunday PVFCU Office Fax Access 24
9 A.M. to 5 P.M 9 A.M. to 4 P.M Closed (619) 475-4313 (800) 253-6991 (619) 475-0998 (619) 475-2009 (866) 760-3777
E-mail: paradise@paradisevalleyfcu.com