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