IN THIS ISSUE:How Much Do Your Kids Know about Money Management? • $800,000 Available for New Orleans’ Area Healthy Food Initiatives

Get Behind the Wheel on a Great Deal • Don’t Let Time Run Out: Register for Our Next Homebuyer Education Workshop

APRIL • MAY • JUNE 2016 | VOLUME 55, ISSUE 2 ASIFCU.ORG

The Predatory LenderFinding Alternatives to End the Dreaded Cycle

When you are short on cash between paychecks, what are your options? For some, family, friends and banks are viable resources for extra cash. But for others, these alternatives are out of reach. Many have to choose more radical and expensive options – predatory “payday” lenders.

A payday loan is a short term loan, usually between $300 - $500 that is repaid with a finance charge by the next pay period. This creates a budget deficit that many borrowers cannot repay. In these instances, the lender allows a minimum payment that does not reduce the borrowed balance. And with finance charges and high interest fees, the borrowers soon have to take out additional payday loans in an attempt to pay off existing loans.

The vicious payday lender cycle usually ends with a financial catastrophe of mounting debt and crashing credit scores from non-payments. The borrower is left in a financial position worse than they were prior to receiving the payday loan.

With ASI’s “Stretch Plan”, members open a line of credit (LOC) between $200-$500. As the member makes regular payments over a period of time, the amount can be increased, offering an opportunity to further build healthy credit without high interest rates. At ASI, our rates never exceed 18% APR, even with the most challenging credit scores. “For someone with bad, little or no credit, the “Stretch Plan” is a great stepping stone toward building a solid credit history,” states Will Scott, VP of Lending for ASI FCU. “Empowering our members to take advantage of affordable credit options is at the core of our mission as a community development credit union”.

To apply for a Stretch Plan loan, or for help on ways to build or rebuild your credit, visit any branch, or check out our website at asifcu.org.

Credit Enhancement15% APR

$1000-$3000

Asset Builder15% APR

$1000-$3000

Comparison Between ASI Stretch Plan Loan and a Payday Loan:

*Payday Loan Consumer Information comes from http://www.paydayloaninfo.org

ASI Stretch Plan Loan

12% APR maximum

$7.51 interest paid for a one-time loan

Club Fee: $4.00/week

Bene�ts: helps build or repair credit, discounted money order fee

Must provide veri�cation of 6 months of employment

Payday Loan in Louisiana*

780% APR maximum

$651.79 interest paid for a one-time loan

Finance Charge: $25/week

Bene�ts: None

Must provide veri�cation of 6 months of employment;must provide previous two pay stubs

ASI FCU has 3 LOW COST Alternatives to Payday Lending. Which one is right for you?

Stretch Plan Loan12% APR

$200-$500Initial Loan

EQUAL HOUSINGLENDER

May 30 Memorial DayHoliday Closure

Oftentimes, the borrower is left in a financial position worse than they were prior to receiving the payday loan.

On May 3, 2016, from midnight to midnight, A Shared Initiative, Inc. (ASII), the sister affiliate of ASI FCU is participating in GiveNOLA Day, which ignites the giving spirit throughout the region.

ASI and ASII are encouraging members and our community to visit givenola.org anytime between midnight and midnight, search for our nonprofit, and click “Donate Now.”

Your donation will go a long way in helping us to continue to empower and strenghten our communities through financial outreach and education. The long-lasting history of ASI and ASII to help families purchase their first home or send their chlid to college, save, or buy their first or a new automobile – is work we believe you would like to support.

By making a donation on May 3, your gift could help us win $1,000 through Rock-Around-the-Clock, the randomly selected prize given each hour to any participating nonprofit that receives a donation in that hour!

GiveNOLA Day is a way for our community to come together to give as one. Together, we can raise more than $4.5 million for the region this year, but we can’t do it without your help. Please do not hesitate to contact ASII at 504.733.7274 x79704, or visit asharedinitiative.org for more information.

JOIN OUR TEAM If you are driven by our mission of

strengthening the financial health of under-served communities through financial services and education, then we would like

to hear from you. We work hard, we play hard and we make a positive impact on our

community each and every day.

April is Youth Savings Month

How much do your kids know about money

management? Learning to save money takes practice. For many of today’s young adults, the weakest link lies in learning the basics. According to a 2014 survey conducted by Harris Poll on behalf of Junior Achievement USA (2014 Teens and Personal Finance Survey), 40% of teens do not have a savings account, checking account, or debit or credit card. 59% of teens do not have money management classes offered at their schools.

Achieving economic prosperity is difficult, and it’s especially hard for young people who’ve never learned how to manage money. ASI is ideally positioned to respond because we believe in the power of education, and we believe in our community and its children. We’re here to help you launch the youth in your life toward financial independence, and here’s how:

Join. For starters, open an ASI savings account for each child in your family. As soon as your children can write, have them fill out deposit and withdrawal slips. Guide teenagers through using a debit card and tracking transactions.

Share. Include your children in household money discussions. Show them how you budget income and expenses. As their skills improve, give them challenges—such as finding a better cell phone plan, calculating the total monthly cost of owning a car, or sticking to a budget for back-to-school or holiday spending.

Coach. Remind your children to ask for help when they need it. And turn to ASI when you want help. Our tradition of service and philosophy of self-help make ASI Federal Credit Union a natural partner in pursuing financial security.

We’re here to help get your child off to the right start financially. For more information, contact an ASI representative at 504.733.7274 or 800.749.6193.

HOMEBUYEREDUCATION WORKSHOPS

Registration going on now!May 16-19 • June 11 & 18 • July 18-21 September 17 & 24 • November 7-10

Email housing.counseling@asifcu.com, or call 504.733.1733 x79704 to reserve your place at an upcoming workshop.

Do you know a grocer, restaurant owner, farmer’s market vendor or other supplier of healthy foods?

Are they working to increase the availability to nutritious foods for families across the Greater

New Orleans area?

The ASI Healthy Food Financing Initiative is offering loans with rates as low as 1% with 15-year repayment terms. Contact

ASI today at 504.733.7274 x77811, or visit asifcu.org/hffi for more information.

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