Tag Archives: payday loans

Money Possible Produces Debt Destroyers

Debt Destroyers photo all participants-no logoRaquel, Fredica and Lisa and Bryan made it. Sixteen weeks of rigorous budgeting and saving and heavy financial lifting.

OK, maybe not that intense…but our three families did make a commitment, met with a financial counselor and made major changes in their financial life. And lived to tell about it.

Here’s what they learned:

“Say no to frivolous spending.”
“Live within your means.”
“Don’t overwhelm yourself with credit.”

Each participant started out with a different financial issue. Lisa and Bryan wanted to bulk up their retirement savings. Fredica needed to control her spending. Raquel’s payday loans were spiraling out of control.

But the outcome for the three was the same: a lighter debt load, and more importantly, less stress in their lives.

The takeaway is that financial stress can cause problems in your daily life…which is in line with this recent survey that says employee financial problems or stress can reduce worker productivity.

What did our participants accomplish in 16 weeks? Here’s the skinny:

Financial Literacy is a family affairLisa and Bryan

  • paid off four of their credit cards
  • learned the difference between needs and wants
  • involved their children and developed a family budget

credit cardsFredica

  • stopped using credit cards
  • is paying down her existing credit card debt
  • learned to live within her means, and work with what money she does have

emergency money jar - compressedRaquel

  • paid down 30 percent of her debt
  • is current on all her bills and has stopped using payday loans
  • started an emergency fund

If you only remember one thing from this post, remember this: Your household budgets and finances are up to you. It’s a life-long process, not just something you can do once and be done.

But don’t feel like you need to do it alone. Get help from the Consumer Credit Counseling Service or a credit union. Financial education is a primary focus of Kansas credit unions, and credit unions nationwide. Credit unions promote financial fitness, and their goal is to make your financial life easier. Get started on your own by downloading the Money Possible Workbook.

Thank you to Lisa and Bryan, Fredica and Raquel for sharing their stories for the world to hear. Using a public venue to air your dirty laundry can be intimidating. These three credit union members took it in stride to promote the importance of financial literacy, and learned a little something along the way.

Quick Tip: Debt Warning Signs

Destroying your debt doesn’t have to take hours. Watch our 15 second tips and then be on your merry way. These tips also air on KAKE-TV’s (ABC, Wichita, KS) regularly.

View all our quick tips.  Follow along on social media at #moneypossible.

Debt Warning Signs


While it may seem that your debt crept up on you, there are warning signs like revolving balances on your credit cards, no emergency fund or relying on payday loans to cover monthly bills.

It’s a Family Affair

Financial Literacy is a family affairFinances are one of the leading causes of friction in family households.

Money can cause divorce.

It ruins the lives of your children (just ask any teenager who is denied money by a responsible parent).

It even causes jealousy with friends and neighbors, because we are all trying to keep up with the Joneses (who, by the way, are broke.)

This is where you can turn it around. Make money a regular conversation in your house, and not a fight. Your kids need to know what is going on. And don’t worry, your friends and neighbors don’t care what you do or don’t have. They just care that you’ll offer them a slice of pizza and a beer when you ask them to move that massive TV that you really shouldn’t have bought in the first place.

In our last post, we reported that adults aren’t making the grade in their financial knowledge. Don’t let this trickle down to your kids, or their kids, and their kid’s kids. Studies have shown the skills and habits you learn as a child, stick with you into adulthood. Don’t let debt be a habit in your family.

Sit down and really talk about your budget. Show your kids what amount is coming in, and what must go out. Kids need to learn now that they can’t always get what they want…and neither can you.

Lisa and Bryan showed their teenagers that more was going out than was coming in. They talked about the difference between needs and wants.

Their kids are fully on board. Even keeping Lisa and Bryan in check when they are out and about.

“Do you really need that purse, mom? Or do you just want it?”

Raquel’s family didn’t realize why she needed those payday loans. After a good discussion, they are helping with the budget and making sure everyone knows where the money is going.

Fredica already told us her children were looking out for her. As self-described impulse buyer, her kids were already on her. “Just because you have a coupon, doesn’t mean you buy it.”

But how can we teach our kids and families about money management, when many of us are struggling ourselves?

  • Make financial literacy a priority in your household, and take it seriously.
  • Prepare a budget and stick to it.
  • Determine where you are a wasteful spender and Shut. It. Down.
  • Talk honestly about needs and wants and respect your children and other family member’s opinions too. Let them each choose a splurge item, unless it’s a trip to Hollywood for them and their five friends to celebrate turning sweet 16. Giving your children and others the power to choose will help keep them on board.
  • We’ve said it before. GET HELP! Many financial institutions like credit unions offer financial literacy assistance. Just watch this nifty interview with one of our super cool Kansas credit union financial counselors. And if your children are old enough, bring them with you! It will improve your household financial knowledge and may even strengthen your relationship with your kids.

Your financial knowledge helps you no matter where you are in life. It can help you live better and healthier, and ensure your children have a better, healthier future too.

The Payday Loan Trap

The Payday loan trapDid you know there are more payday loan establishments in the United States than McDonald’s and Burger King fast food restaurants COMBINED? Welcome to America, where we swipe our cards, spend our money and stuff our faces.

12 million Americans take out payday loans each year. That’s a lot, but it’s less than half of the 27 million Americans who eat McDonalds EVERY DAY! That’s a lot of burgers.

Raquel, our young mother, admits she stepped into the payday loan trap.

Payday loans are meant to be a quick fix, but consumers are finding these loans (or cash advances) are causing debt to become the next four-letter word. These loans are typically $500 or less and carry hefty fees. The problem is, most consumers, 80 percent of you, can’t pay off the first loan, so its rolled over or renewed within two weeks, turning that initial $500 into $1,500 before you can even say “super size it!”

Don’t despair. Try these alternatives to get you by in a pinch.

Credit unions.
Credit unions put people before profit, and as not-for-profit financial cooperatives (read: not-for-profit bank) they can offer low or no fees on some of their services. The credit union philosophy is “people helping people” so you can be sure that they won’t pull a fast one on you. Credit unions promote financial literacy too, and many have a financial counselor on staff that can help you re-evaluate your finances and put you on a path to smart money management skills. Many also conduct money management workshops for their members, free of charge.

You have to become a member first, which is easier than understanding what is said through a drive-thru speaker. Find a credit union near you at asmarterchoice.org.

Credit counseling help.
A financial counselor can’t help you if you need cash NOW, (kinda like an apple won’t satisfy that craving for chocolate), but if you are using payday loans, it’s probably a good idea to seek help with your financial situation, and eliminate the need for future payday loans. So join the crowd of roughly two million people who sought the help of a financial counselor last year.

A non-profit agency like Consumer Credit Counseling Service usually offers free money management help such as budget counseling, debt management planning, and mortgage default or rent delinquency counseling. In fact, our Money Possible participants are all meeting with a counselor from the Consumer Credit Counseling Service of Wichita.

Reduce spending in other areas.
If you stop hitting the McDonald’s drive-thru, wait until that epic movie is on pay-per-view and hold off buying that new iPhone, you might be able to take that quick cash place off speed dial. Don’t be fooled…it’s hard work, just like eating a salad instead of a Big Mac. But you’ll soon find that some of your “needs” are actually “wants” and you can go without them.

Negotiating your bills.
Talk to your credit card companies. Beg your utility company. Negotiate a payment plan. Most would rather keep you as a customer than lose you, and are willing to work with you. At least it’s worth a try.

Cash advance from a credit card.
We usually don’t condone using your credit card for cash, but the 25 to 30 percent interest rate you’ll be charged is far less than the fees and 300 percent to 500 percent interest on a payday loan. Yup…pay day loan places charge 300 to 500 percent interest plus fees!

Think on that for a minute. It’s not uncommon for a consumer to be charged $10 or $20 on every $100 borrowed. So, if you borrow $300, and the fee is $20 per $100, you’ll actually owe $360. Then, if you can’t pay that loan in two weeks, you’ll roll it over and pay another $60. So now you’ve paid $120 in fees to borrow $300. That equals 520 percent interest rate!

Meet the Participants

“I need to pay down loans.”
“We want to save for retirement.”
” It’s hard to control my spending.”

Sound familiar? These are the challenges facing our three Money Possible families, and the issues affecting millions of Americans who want to take control of their finances.

Each family has agreed to tell their story, and show that getting control of their money isn’t hard, it just takes dedication and a little self-control (of course, self-control is a whole other problem for us Americans…evident by our super-size nation…and we’re not just talking about food!)

Meet the participants
RaquelRaquel
Raquel is married and a mother of two young children.

In her 30s, her goal is to pay down payday loans, and learn to save.

Lisa & BryanLisa and Bryan
In their 40s, Lisa and Bryan want to save for retirement.

They have three older children. They need to learn to say “no” and live within their means.

FredicaFredica
A divorced mother of four in her 50s, Fredica wants to control impulse spending.

She always wants to save enough to buy a house.

Follow these Wichita area credit union members’ stories here, and every Tuesday on KAKE-TV’s (Channel 10, ABC) 4 p.m. newscast. Follow the hashtag #moneypossible.

Let’s face it…with Americans $11 trillion in debt and struggling with saving money, many of you can probably benefit from following them and learning from their successes and their challenges.

Who hasn’t had loans to pay back? Who doesn’t need to save a little (or a lot) more for retirement? And who isn’t plagued by the temptations at the grocery store?  By following Raquel, Fredica and Lisa and Bryan, they will show us that we can do it. We can destroy our debt.

This program highlights the need for consumer financial education, as well as the value of credit unions as strong financial partners. The campaign aims to give consumers tips and explain that there are resources available to those who need extra help.

Money Possible Participant Sneak Peek

Last week we posted pictures from our first video and photo shoot.Your-photo-here-for-blog-post

Here’s a sneak peek profile of each (we’ll reveal their headshots later):

  • Single mom of three, 50-ish, administrative worker who rents a home.
  • Married couple with three children, 40-ish, owns their home.
  • Married mom in her 30s with two young children, works in education, renting a home.

Here is some insight into why they applied to be a Money Possible participant:

“I need to stop spending and buying. If it’s on sale, I know someone who can use it.”
We’ve all fallen victim to the merciless “sale” tactics or “I have a coupon” mentality. Stick to a list to deter impulse buying.

“I’ve tried other programs, but without talking to someone regularly, I have not stayed on track to save for retirement.”
Ah, this one is accountability. Telling someone (and it can even be your friend or neighbor) your goals and struggles can be just the thing you need to stay on track.

“I need to save so I don’t have to turn to payday loans…if I have it, I spend it, down to the cent.”
Is your cash burning a hole in your pocket? Gone shopping “just to see” if you need anything? Saving money is hard, and takes dedication and self-control. Set up an automatic transfer so you don’t “see” how much is being taken out of your account, or give it to a trusted friend for safe keeping.

Do these scenarios sound familiar? They should. Money management is at the top of  “things I need to do” for the majority of Americans. And it’s not something that can be delegated to the “honey-do” list.

Remember, you’ll be able to follow our participants by watching weekly television segments on KAKE-TV…we’ll post the television schedule soon.