To a Financially Happier & Healthier New Year

It is that time of year again. It is a time for reflection on what has been a tough year economically and one of many challenges. It is also a time to look ahead and make some resolutions. We prefer to look ahead to 2010 and find ways we can help you with your financial resolutions.

We've partnered with the BALANCE Financial Fitness Program. BALANCE services include money management and housing counseling, a debt repayment plan, credit report review, online financial education tools and a toll-free information line - all free to members.

We invite our members to call BALANCE toll free at 1-888-456-2227 and let them help you enjoy a finanically happier & healthier new year.

Threat to Member's Peace of Mind

The current political climate has caused a rash of potential and enacted legislation rushed through the system. It seems that anti banking sentiments have caused the pendulum to shift to the side of stricter legislation. The problem is that in the rush to pass this legislation, unintended side effects are not account for or thought through. One such issue currently being discussed is Courtesy Pay. Due to the practices of some greedy institutions, the whole concept of Courtesy Pay is in jeopardy.

Courtesy Pay provides members peace of mind because those that opt into our program know that we will pay any items that try to clear up to an aggregate amount of $500. There is a fee for this service but the item gets paid rather than returned to the merchant's financial institution. For example, if a member writes a rent check and by the time the check is presented and the member is short by $50, the credit union pays the item instead of retunring it. Not only can the member breathe easy, but the credit union has saved them the fee on the merchant side which in the case of most apartment complexes is well over $75.

Now, in the rush to create legislation, that feature may be under threat. If we did not have a Courtesy Pay program that the member could choose to opt into, lets look at what would have happened in the case of the rent check. The credit union would have returned the item and charged the normal NSF fee (ours is $20 which is among the lowest you can find). On top of that, the member would have to deal with the $75 plus fee of the apartment complex and might not be allowed to pay rent with checks in the future. Not only has the member lost money, but they then lose the time and convenience of not being allowed to pay with checks.

If you want to voice your opinion regarding this issue to our elected officials, we invite you to visit http://www.capwiz.com/tcul/issues/alert/?alertid=14104801&type=CO

When the credit markets froze, we were there

Earlier this year, we heard stories from around the country about how even people with great credit were unable to get loans. That never happened here at Gulf Coast Educators. In fact, while others were freezing their lending, we stepped it up and let people know that we had plenty of money to lend.

You see, that is what credit unions are designed to do; help our members. Chip Filson, a well known and respected credit union consultant, recently called credit unions the first responders of the financial crisis. He went on to say that as the big banks shut down consumer lending, credit unions stepped up without any prompting. The credit unions responded to the crisis by continuing to make loans, collaborate with the car makers to make loans available with special pricing, and working with members facing foreclosure. All without being asked or told by the government. Again, it's just what credit unions do.

During these tough times, please let us know what we can do for you. Afterall, we are your financial first responders.

Our Promises to Our Members

• We promise to treat you with respect and the highest standards of professionalism
• We promise to take ownership of your request
• We promise to make it easy to do business with us.
• We promise to respond to your requests in a timely manner.
• We promise to identify your needs and suggest a solution that will improve your financial life.
• We promise to ensure the privacy of your information.
• We promise to be a trusted and accurate source for financial information.

We believe that by living up to these promises in everything we do, in every member interaction, we will provide our members with the best service possible. In the near future we will be making these promises very prominent to our members. We hope that they hold us accountable to these promises. We hope that they share with us when we fall short and when we exceed their expectations. As always, let us know what you think.

$aving Money

An employee said something interesting to me the other day and it got me thinking. She came up to me and said that I was the person to see for some money saving tips. I can't escape my Scottish heritage. I do tend to be frugal and it seems my coworkers know it.

Anyway, I obliged and gave her a few of my tips and then I asked the staff to share theirs. The following is a brief compilation of some the ideas:

1. Have a savings goal. If you are saving for something such as a vacation, it makes you more likely to think twice about impulse buys.


2. Pay yourself first. Make sure you max your 401K or 403b, especially if your organization matches funds. If not, you're giving up free money. Also, set up automatic investments to coincide with paydays. That way the money is gone before you have the chance to blow it.


3. Drink water at restaurants. The price of sodas & tea has exploded. It is up over $2.50 at most places now.


4. Rent movies from a Red Box or even the Library. Yes, the library has a good collection of movies. My kids go once a week and pick a few videos which they watch over and over again. Also, many websites such as hulu.com stream free movies.


5. If you have a friend that you work with and the two of you live close by, you can car pool to save on gas. Joseph & I have made a point of it to carpool. It is a great way to save money and the environment at the same time. Also, it gives you the chance to catch up with a coworker or in our case discuss business on the way to and from the office.


6. PRICE MATCH: I have taken advantage of that at BEST BUY and WALMART. A BLUE RAY COMBO PACK was selling at Target for 10.00 Best Buy had it at 20.00 , they matched it !! I saved a drive and earned more points on my REWARD ZONE CARD. I like this and would take it one step further: don’t be afraid to bargain or haggle with retailers. In some cases, they will work with you not just on price. For example, free delivery/shipping or no interest financing. Also, be willing to walk away if they don’t budge.

Now it's your turn. Feel free to share your Money $aving tips.

The Importance of Responsible Credit Usage

There has been a lot of focus in the media about credit scores lately because in some markets, the credit crunch has limited the availability of credit to only those with the top scores. That is not so much the case in our market and even less applicable at the credit union. We really do have money to lend, but we also want to make sure our members use credit responsibly.

After all, your credit score and your credit report can affect so much more than simply obtaining loans. Credit scores are often used to calculate insurance rates and many employers use credit reports to screen potential employees. Bad credit can have a negative impact on marriages and even personal health. Then, there is the cost in dollars of bad credit. People with bad credit will pay more for cars, credit cards and mortgages. For example, on a 30 year mortgage of $150,000, a member with poor credit can expect to pay $144,000 more than a member with excellent credit over the life of the loan (see table below).



Now that we have your attention, what are some ways to raise a credit score?

• Pay your bills on time, even if it is only the minimum amount.
• If you are past due get current and stay current.Keep your balances low on credit cards and lines-of-credit (revolving debts).
• Pay off your debt; don’t move it around. Make sure to pay the debt down instead of moving it from low rate card to low rate card.
• Don’t open a number of new credit cards that you don’t need, just to increase your available credit.
• Don’t open a lot of new accounts rapidly. Rapid account buildup looks risky if you are a new credit user.

If you have had past credit problems, what can you do?

• Pay your collection items
• Pay your judgments
• Pay your charged off debts
• Open new accounts and handle them responsibly. The credit union offers a credit saver loan which can help in this area. Paying old debts will not remove the item from your report. Responsible handling of new accounts will establish new history and risk patterns and eventually improve your score.

Should you have any questions about using credit responsibly, please feel free to contact us at info@gcefcu.org

Avoid the High Costs of Check Scams

It is important to know that checks don’t offer the same protections as credit cards and other forms of payments. Anyone can print what appears to be completely legitimate check and send it to you. Once you deposit that check into your account, you become liable for the funds. We accept your deposit on good faith. No one would be happy if we held every check that members deposited.

“Most Americans don’t realize they are financially liable when they fall for these scams,” said Susan Grant, vice president of the National Consumer's League, an Alliance partner. “There is no legitimate reason anyone would mail you a check or money order and then ask you to wire money in return,” Grant said. “People need to know that checks can take months to clear, even if the money initially looks like it’s in your account. The scammers know that, and most consumers don’t.”

The most common scams we see at the credit union are:

• Sudden Riches: The scammer claims the victim has won a foreign lottery or sweepstakes. The notice comes by mail, phone, fax or email. Consumers should know that winners of real cash prizes are notified by certified mail.
• Work-at-Home: The scams promise easy money by ‘processing’ checks. The victim deposits the checks and sends the money to the scammer, minus a small fee. Legitimate companies don’t do business like this.
• Overpayments: Scammers buy merchandise online, and then claim they mailed the wrong amount by mistake. The seller is asked to deposit the ‘wrong’ check anyway, and then return the ‘excess’ amount to the scammer. But the check doesn’t clear, and the victim has sent the scammer his own.

The cost of becoming the victim of one of these scams is always high. The victim ends up owing the credit union the funds which usually runs between $2000 to $5000. The victim usually ends up spending countless hours following up with authorities who are so overwhelmed that these cases are rarely solved. The victim suffers emotionally as well.

The only way to avoid these costs is to avoid the scams. If you would like more information, please feel free to send us an e-mail at info@gcefcu.org

Thank You Volunteers

Some people are fortunate enough to earn their livelihoods in jobs that directly help to create a more peaceful, just and sustainable world. But much of the efforts to make life better for our communities and our world are done by volunteers -- people who work for a better world without pay. Volunteers ARE creating a better world, one person and one act of kindness at a time. -- Robert Alan

This quote appropriately reflects the way Gulf Coast Educators FCU views the world. We know that our members who dedicate themselves to education are those people fortunate to earn their livelihoods by creating a better world. We know this because so many of the management team have spouses, siblings or children who have chosen to be educators. We all have personal stories of how our loved ones have touched lives and made the world a better place by being educators.

It is in the spirit of the above quote that Gulf Coast Educators FCU encourages employees to volunteer. Many of the credit union's staff do so on their own by volunteering outside of work through churches, PTAs, the red cross and special olympics to name a few. In addition, many of the employees volunteer on behalf of the credit union through programs such as HOSTS, sending speakers and presenters to schools, relays for life, food & toy drives and local education foundations. In fact, the credit union has active board volunteers on 7 area education foundations and works with several others in the area. During the Texas Invitational, a basketball tournament hosted by the Pasadena ISD Education Foundation, the credit union sends an army of employees to help make the tournament a success for all involved.

So we salute all of those fortunate enough to earn their livelihoods in jobs that directly help to create a more peaceful, just and sustainable world and the volunteers who work for a better world without pay. Keep up the great work and if you haven't discovered the joy of volunteering, let us know and we can help get you started.

Opportunities in Uncertain Times

Turn on the TV or radio and you'll hear all about how awful the economy is and how bad things are, not only here in this country, but all over the world. If you believed the media, It would seem that there is very little good news during this time of uncertainty.

There are, however, opportunities during these uncertain times. For example, now is a very good time to buy a new vehicle:

• GM is offering credit union members special supplier pricing along with current rebates. You will need to register with GM in order to qualify and you can do so at their special GM Credit Union website.
• Many of the car makers are adding 'Layoff Protection' and/or options to protect the value of the vehicle as an incentive to buy.
• The credit union has plenty of money to lend.

Home buyers will also find this an opportune market for them:

• First time home buyers may qualify for big tax credits.
• Mortgage rates are at historic lows.
• In some markets, housing prices have dropped by double digits.

There is also an opportunity for all of us to learn from this downturn and the impact it has on us.

• Savings by Americans has grown recently whereas before this downturn, the savings rate of Americans was negative.
• Learn to buy items and stocks on sale.
• Use this time to go back to school to learn new skills or certifications.

Keep an eye out for other opportunities that present themselves to you.