October is Credit Awareness Month!

Wednesday September 29, 2010

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Empowerment is a vital pursuit. The YWCA is dedicated to this pursuit and empowering our membership in multiple ways. One area the YWCA works to empower the community is through the Financial Literacy program. With the partnership of Wells Fargo and their "Hands on Banking" curriculum, the YWCA has helped numerous individuals begin on the road toward self-sufficiency through financial training and literacy.

"Wells Fargo's commitment to the community is something we take very seriously," stated Byron Reed, Wells Fargo Sr. Vice President. "A prime example of this commitment is the long time partnership we have enjoyed with YWCA Greater Los Angeles. Our partnership with the YWCA is important because of the joint mission we share, which is empowering our clients/communities to become financially successful through financial education."

The YWCA is grateful for the rich partnership shared with Wells Fargo and their support. In honor of "Credit Awareness Month", enjoy the following credit tips from the Wells Fargo "Hands On Banking" curriculum:


How much debt can you repay?

General guideline #1:
Never borrow more than 20% of your yearly net income.
General guideline #2: Keep your credit card debt low enough so that your required payments are no more than 10% of your monthly income.

TIP: When comparing credit cards, look at the Annual Percentage Rate (APR). APR is a measurement that takes into account a loan's interest rate, term, and fees to illustrate the total cost of credit expressed as a yearly rate. The lower the APR, the lower the total cost of borrowing.

Good Credit Signs
• Paying at least the minimum required payment
• Paying on time
• Never missing a payment
• Staying within your credit limit

Result
• Easier to borrow money
• No additional penalty fees
• More money you'll keep in your pocket

Bad Credit Signs
• Paying too little
• Paying too late
• Missing payments
• Going over your credit limit
• Having too much debt

Result
• Difficult to borrow money
• You lose money on late fees
• More money spent on finance charges


DEBT WARNING SIGNS & TIPS
Twenty warning signs of financial trouble
1. You're always late in paying your bills.
2. Your checking account is frequently overdrawn.
3. You race to deposit your paycheck because you've already written checks that require the money in your paycheck.
4. A small reduction in your income or an unusual expense would make you unable to pay all of your monthly bills.
5. Your credit accounts are usually at their maximum limits.
6. You apply for more credit cards because you have reached the limit on the ones you have.
7. You are spending more than 20% of your take-home pay on credit payments (not counting your rent or mortgage).
8. Your loan or credit card balances stay the same or go up each month.
9. You can make only minimum payments on your revolving charge accounts.
10. It takes you 60 or even 90 days to cover bills you once could pay monthly.
11. You don't have a savings account, or have stopped making deposits to it.
12. You are always worried about your debts.
13. You argue with your spouse or partner over bills.
14. You're still paying off purchases you made a year ago.
15. You use savings or credit cards to cover everyday living expenses, such as groceries.
16. You sometimes wonder why you made certain purchases.
17. You juggle payments to keep creditors satisfied.
18. You ignore the mail or telephone to avoid dealing with creditors.
19. You put off medical and dental visits because you cannot

 

 

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Photos

  • Wells Fargo