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COSBY SHOW VIDEO
◦ REGULAR PEOPLE – NOT AS EASY AS WE’D LIKE TO BELIEVE OR AS POSH AS PEOPLE BELIEVE IT IS TO LIVE ON ASSISTANCE
THIS WAS MY LIFE:
◦ 1. SINGLE, NO DEPENDENTS ◦ 2. SINGLE PARENT OF NEWBORN ◦ 3. MARRIED, NO CHILDREN ◦ 4. MARRIED, NEWBORN CHILD
EVER-PRESENT ISSUE OF FUNDING MIXED WITH NEW ISSUE OF ADHERING TO BANK REGULATIONS
THAT ALMOST WASN’T…
Daughter of Director in Payday Loan Debt “This can’t be the only way…”
“Is this a widespread problem?”
Something has to be done about this… Chance meeting at a training…
KAREN HAUSER OF CC-SALINA AND KIM MOORE OF UNITED METHODIST HEALTH MINISTRY FUND. WHAT IF THERE WAS A WAY TO LEND PEOPLE MONEY TO PAY OFF THESE LOANS THROUGH A LOW-INTEREST BANK LOAN THAT WOULD BE GUARANTEED BY FUNDS “GRANTED” THROUGH AN OUTSIDE SOURCE? BRILLIANT IDEA AND TYPE OF PROJECT THAT COULD GARNER SUPPORT FROM THE FOUNDATION’S BOARD
CATHOLIC CAMPAIGN FOR HUMAN DEVELOPMENT
APPLIED FOR AND RECEIVED FUNDING TO HIRE A COORDINATOR AND A PART-TIME FINANCIAL ADVOCATE IN SUMMER OF 2012 LYDIA STARTED IN EARLY SEPTEMBER CLAUDETTE BEGAN LATE SEPTEMBER
WHAT WAS… LOCAL BANK IN 5 COMMUNITIES (Concordia, Manhattan, Junction City, Hays, Goodland) CC – SCREENERS & CASE MANAGERS UMHMF - $100,00.00 IN GUARANTEE FUNDS
WHAT WAS… DEFAULT TRIGGER ONLINE NOTICE TO UMHMF FOR PAYMENT OF REMAINING PRINCIPLE 10% LOSS ($10,000.00) IMMEDIATE SUSPENSION OF PROGRAMS SUPPORT BY UMHMF
SADLY, FROM HERE THINGS RAPIDLY BEGAN
TO FALL APART ON US AT EVERY LEVEL…
BANK AFTER BANK AFER BANK AFTER BANK…
DOESN’T MEET REGULATIONS FOR BANKS…DIDN’T MAKE SENSE TO BANKS….IF GOING TO LEND WITHOUT “REAL” COLLATERAL WHY DO WE NEED CATHOLIC CHARITIES…
WHAT TO DO…WHERE TO GO…
QUICK THINKING • CHANGE GAME PLAN FIND ALTERNATE ROUTE TO GET PROGRAM GOING
QUITTING IS NOT AN OPTION…REFUSE TO FAIL NEW VIEWPOINT…STARTING A NEW BUSINESS IN NEED OF INVESTORS SELL THE PROGRAM AS DIFFERENT THAN NORMAL SOCIAL SERVICE PROGRAMS HAND UP…NOT A HANDOUT… CONSUMER REQUIREMENTS & INVESTMENT
WHAT IS… SUNFLOWER BANK (Manhattan, Junction City, Hays, Salina) CITIZEN’S NATIONAL BANK (Concordia) CC – SCREENERS & CASE MANAGERS: Certified Credit Counselors UMHMF - $25,000.00 GRANT APPROVED IN JANUARY
WHAT IS… CC MATCHING FUNDS $25,000.00 – APPROVED BY BISHOP & FINANCE CMTE ACTUAL DEPOSIT ACCOUNT AT BANKS SO LOANS COULD BE SECURED BY THE DEPOSIT DEFAULT TRIGGERS APPROVAL OF WITHDRAWAL FROM DEPOSIT ACCT – PRINCIPLE ONLY 2 SIGNERS BEFORE WITHDRAWAL OF FUNDS
MORE BANK FRIENDLY OPTION
MUCH MORE STRINGENT DUE TO 50% DECREASE
NEED FOR FINANCIAL LITERACY AND INTENSIVE CASE MANAGEMENT
OUR GOAL IS TO EMPOWER PARTICIPANTS AND COMMUNITIES TO FIND JUST SOLUTIONS TO ISSUES OF POVERTY. EMPOWERING COMMUNITY MEMBERS GIVES THEM A VOICE AND NARROWS THE SOCIAL AND ECONOMIC DISTANCE BETWEEN DIVERSE GROUPS.
INDIVIDUALS DO BETTER AND LEARN MORE WHEN THERE IS A SENSE OF BUYIN TO PROGRAMS SO WE HAVE SPECIFIC REQUIREMENTS FOR EVERY CLIENT WHO IS APPROVED FOR EACH ASSET DEVELOPMENT PROGRAM. WE CALL IT THE
TRIANGLE OF SUCCESS!
1. 2. 3.
MONEY SCHOOL LEADERSHIP CIRCLE/SUPPORT GROUP (MONTHLY) FINANCIAL COACHING (MONTHLY)
TEACH A MAN TO FISH…
Financial Literacy Curriculum 4-Hour Class Developed by Catholic Charities of Fort Worth Covers all the basic information Interactive Classes to engage participants
Support group for financial health Allots group time for community members to bring specific areas of expertise to group Diminishes shame and embarrassment associated with debt Gives members the lead in the groups so issues discussed are member-driven Promotes understanding of debt being a community issue
Individualized budgeting Coach provides education and insights, but consumer does the heavy lifting and is responsible for the results produced. The coach is the educator and protagonist, but the consumer is always the decision-maker and action-taker. Final push of financial empowerment
IN THE WORDS OF NELSON MANDELA: “OVERCOMING POVERTY IS NOT
A GESTURE OF CHARITY. IT IS AN ACT OF JUSTICE. IT IS THE PROTECTION OF A FUNDAMENTAL HUMAN RIGHT, THE RIGHT TO DIGNITY AND A DECENT LIFE…”
IT STARTS WITH FINANCIAL LITERACY AND ENDS WITH FINANCIAL EMPOWERMENT!!!
THE TOOLS AND THE OPPORTUNITIES… PROVEN WAYS TO LIVE WITHOUT FINANCIAL STRESS
“The only man who sticks closer to you in adversity than a friend is a creditor.”
CAN CATHOLIC CHARITIES MAKE A DIFFERENCE IN THE LIVES OF THE WORKING POOR?
YES, WE CAN…WE MUST!!!
“Speak up for those who cannot speak for themselves, for the rights of all who are destitute. Speak up and judge fairly; defend the rights of the poor and needy.”
YOU PAY US FOREVER TO PAY YOU TODAY…
Not a bank loan Borrow enough to get to next payday Operate under variety of titles Take postdated checks, debit card information as collateral. Large fee for the loan, which puts the interest rate very high, some rates are as high as four hundred percent.
rate can be charged over each fourteen-day period. Law states only have two payday loans taken out at a time.
Since payday loans in Kansas are capped at $500 the maximum fee that can be charged is $75. These fees are included in the interest rate – FREE STANDING SITES
SO, WHAT WILL THE KLPP DO FOR CONSUMERS?
MICROLOANS UP TO $1000.00 LEGITIMATE LENDING SOURCE PAY OFF PREDATORY LOANS HELP ESTABLISH POSITIVE BANKING RELATIONSHIP STRONG FOUNDATION OF FINANCIAL LITERACY PROMOTE BEHAVIOR CHANGE THROUGH INTENSIVE CASE MANAGEMENT
ESTABLISH A RELATIONSHIP WITH A “REAL” BANKING INSTITUTION HELP TO BUILD OR RE-BUILD CONSUMER’S CREDIT ACCESS FINANCIAL LITERACY COMPONENTS AND LEARN VALUABLE TOOLS REGARDING FINANCIAL EMPOWERMENT
IF THE GOAL OF CATHOLIC CHARITIES IS TO REDUCE POVERTY WE MUST START EMPOWERING OUR CLIENTS IN THE AREA OF FINANCE
“The borrower is servant to the lender.”
HOW CAN WE EXPECT OUR CLIENTS TO HAVE THEIR FOCUS ON GOD AND FAMILY WHEN THEY ARE LIVING IN FEAR OF DEBT?
DEBT = STRESS STRESS = INCREASED SUSCEPTIBILITY TO: Heart Disease Diabetes Common Infections Obesity
COMMON COPING MECHANISMS FOR DEALING WITH STRESS: Excessive Alcohol Consumption Illegal Drugs Overeating
DEBT = STRESS Financial Stress is leading cause of divorce Correlation: Personal debt and increased levels of anxiety Correlation: Personal debt and increased reports of depression Correlation: Personal debt and cardiovascular problems and other mortality rates
Stress takes away ability to focus on important stuff:
1. 2. 3. 4. 1. 2. 3. GOD CHILDREN WORK RELATIONSHIPS
When a parent is financially stressed:
CHILDREN SUFFER FAMILY UNIT SUFFERS COMMUNITY SUFFERS
A 2009 STUDY FOUND EVIDENCE OF A RELATIONSHIP BETWEEN ECONOMIC INSTABILITY AND AN INCREASE IN SUICIDE
CONSUMERS IN DEBT TO PAYDAY LOAN COMPANY CONSUMERS IN NEED OF FINANCIAL LITERACY
COMMUNITIES AS A WHOLE
OUR CLIENT’S STORIES OF THE DESTRUCTIVE JOURNEY THROUGH PREDATORY LENDING…
• CURRENTLY HAS TWO PAYDAY LOANS • HAVING TO MAX OUT 2ND LOAN TO PAY OFF FIRST LOAN • WIFE HAD LOAN BUT PAID OFF • WIFE HAVING TO GET NEW LOAN TO PAY BILLS • BOTH ARE SIGNERS ON ADDITIONAL TITLE LOAN ON VEHICLE
APPLICATION DENIED DUE TO AMOUNT OF DEBT AND LACK OF INCOME SUFFICIENT TO PAY KLPP MONTHLY PAYMENT
ELDERLY CHURCH MEMBER TOOK OUT PAYDAY LOAN TO AFFORD MEDICATIONS COMING TO CHURCH TO ASK FOR HELP UNABLE TO AFFORD MEDS & BILLS 6-12 MEMBERS IN DEBT TO PDL/TITLE LOANS
OBVIOUS DISTRESS WHEN CAME TO CC STARTED WITH COUNSELING DIFFERENT PROGRAMMING HELP DOING WELL AND WILL GRADUATE FROM COLLEGE IN DECEMBER NEW MEMBER OF KLPP-SPECIFIC BOARD TIME TO GIVE BACK AND SHOW OTHERS IT DOES GET BETTER
CATHOLIC CHARITIES OF NORTHERN KANSAS – MAIN OFFICE – 425 WEST IRON AVE. SALINA, KS 67401
CLAUDETTE ALMARAZ – KLPP COORDINATOR LYDIA LOWE – EXECUTIVE ASSISTANT/FINANCIAL ADVOCATE
OFFICE PHONE: 785-825-0208 CLAUDETTE’S CELL: 785-643-3928
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